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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1591 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 263
115th CONGRESS
  1st Session
                                S. 1591

To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 19, 2017

   Mr. Van Hollen (for himself, Mr. Toomey, Mr. Cruz, Mr. Scott, Ms. 
   Hirono, Mr. Cotton, Mr. Tester, Ms. Cortez Masto, Ms. Warren, Mr. 
 Schatz, Mr. Kennedy, Mr. Brown, Mr. Casey, and Mr. Crapo) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

                           November 16, 2017

                Reported by Mr. Crapo, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Banking 
Restrictions Involving North Korea (BRINK) Act of 2017''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Definitions.
  <DELETED>TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO 
                   TRANSACTIONS INVOLVING NORTH KOREA

<DELETED>Sec. 101. Sanctions with respect to financial institutions 
                            providing support to the Government of 
                            North Korea.
<DELETED>Sec. 102. Expansion of licensing requirements for transactions 
                            in North Korean covered property.
<DELETED>Sec. 103. Authorization of imposition of sanctions with 
                            respect to the provision of specialized 
                            financial messaging services to North 
                            Korean financial institutions and 
                            sanctioned persons.
<DELETED>Sec. 104. Authorization of imposition of sanctions with 
                            respect to governments that fail to comply 
                            with United Nations Security Council 
                            sanctions against North Korea.
<DELETED>Sec. 105. Grants to conduct research on financial networks and 
                            financial methods of the Government of 
                            North Korea.
<DELETED>Sec. 106. Report on use by the Government of North Korea of 
                            beneficial ownership rules to access the 
                            international financial system.
<DELETED>Sec. 107. Sense of Congress on identification and blocking of 
                            property of North Korean officials.
<DELETED>Sec. 108. Sense of Congress regarding the Kaesong Industrial 
                            Complex.
             <DELETED>TITLE II--DIVESTMENT FROM NORTH KOREA

<DELETED>Sec. 201. Authority of State and local governments to divest 
                            from companies that invest in North Korea.
<DELETED>Sec. 202. Safe harbor for changes of investment policies by 
                            asset managers.
<DELETED>Sec. 203. Sense of Congress regarding certain ERISA plan 
                            investments.
<DELETED>Sec. 204. Rule of construction.
                <DELETED>TITLE III--GENERAL AUTHORITIES

<DELETED>Sec. 301. Rulemaking.
<DELETED>Sec. 302. Authority to consolidate reports.
<DELETED>Sec. 303. Rule of construction.

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds the following:</DELETED>
        <DELETED>    (1) Since 2006, the United Nations Security 
        Council has approved 5 resolutions imposing sanctions against 
        North Korea under chapter VII of the United Nations Charter, 
        which--</DELETED>
                <DELETED>    (A) prohibit the use, development, and 
                proliferation of weapons of mass destruction by the 
                Government of North Korea;</DELETED>
                <DELETED>    (B) prohibit the transfer of arms and 
                related materiel to or by the Government of North 
                Korea;</DELETED>
                <DELETED>    (C) prohibit the transfer of luxury goods 
                to North Korea;</DELETED>
                <DELETED>    (D) restrict access by the Government of 
                North Korea to the financial system and require due 
                diligence on the part of financial institutions to 
                prevent the financing of proliferation involving the 
                Government of North Korea;</DELETED>
                <DELETED>    (E) restrict North Korean shipping, 
                including the reflagging of ships owned or controlled 
                by the Government of North Korea;</DELETED>
                <DELETED>    (F) limit the sale by the Government of 
                North Korea of precious metals, iron, coal, vanadium, 
                and rare earth minerals; and</DELETED>
                <DELETED>    (G) prohibit the transfer to North Korea 
                of rocket, aviation, or jet fuel.</DELETED>
        <DELETED>    (2) The Government of North Korea has threatened 
        to carry out nuclear attacks against the United States and 
        South Korea and has sent clandestine agents to kidnap or murder 
        the citizens of foreign countries and murder dissidents in 
        exile.</DELETED>
        <DELETED>    (3) The Federal Bureau of Investigation has 
        determined that the Government of North Korea was responsible 
        for cyberattacks against the United States and South 
        Korea.</DELETED>
        <DELETED>    (4) In February 2016, the Director of National 
        Intelligence reported that the Government of North Korea is 
        ``committed to developing a long-range, nuclear-armed missile 
        that is capable of posing a direct threat to the United 
        States'' and some arms control experts have estimated that the 
        Government of North Korea may acquire this capability by 
        2020.</DELETED>
        <DELETED>    (5) The Government of North Korea tested its 5th 
        and largest nuclear device on September 9, 2016.</DELETED>
        <DELETED>    (6) The Government of North Korea has increased 
        the pace of its missile testing, including the test of a 
        submarine-launched ballistic missile, potentially furthering 
        the development of capability to attack the United States with 
        a nuclear weapon.</DELETED>
        <DELETED>    (7) Financial transactions and investments that 
        provide financial resources to the Government of North Korea, 
        and that fail to incorporate adequate safeguards against the 
        misuse of those financial resources, pose an undue risk of 
        contributing to--</DELETED>
                <DELETED>    (A) weapons of mass destruction programs 
                of that government; and</DELETED>
                <DELETED>    (B) prohibited imports or exports of arms 
                and related materiel, services, or technology by that 
                government.</DELETED>
        <DELETED>    (8) The strict enforcement of sanctions is 
        essential to the efforts by the international community to 
        achieve the peaceful, complete, verifiable, and irreversible 
        dismantlement of weapons of mass destruction programs of the 
        Government of North Korea.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Applicable executive order; applicable united 
        nations security council resolution; government of north korea; 
        north korea.--The terms ``applicable Executive order'', 
        ``applicable United Nations Security Council resolution'', 
        ``Government of North Korea'', and ``North Korea'' have the 
        meanings given those terms in section 3 of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9202).</DELETED>
        <DELETED>    (2) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means--</DELETED>
                <DELETED>    (A) the Committee on Banking, Housing, and 
                Urban Affairs and the Committee on Foreign Relations of 
                the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Financial Services 
                and the Committee on Foreign Affairs of the House of 
                Representatives.</DELETED>
        <DELETED>    (3) Knowingly.--The term ``knowingly'', with 
        respect to conduct, a circumstance, or a result, means that a 
        person has actual knowledge, or should have known, of the 
        conduct, the circumstance, or the result.</DELETED>
        <DELETED>    (4) North korean covered property.--</DELETED>
                <DELETED>    (A) In general.--The term ``North Korean 
                covered property'' includes any goods, services, or 
                technology--</DELETED>
                        <DELETED>    (i) that are in North 
                        Korea;</DELETED>
                        <DELETED>    (ii) that are made with 
                        significant amounts of North Korean labor, 
                        materials, goods, or technology;</DELETED>
                        <DELETED>    (iii) in which the Government of 
                        North Korea or a North Korean financial 
                        institution has a significant interest or 
                        exercises significant control; or</DELETED>
                        <DELETED>    (iv) in which a designated person 
                        has a significant interest or exercises 
                        significant control.</DELETED>
                <DELETED>    (B) Designated person.--In this paragraph, 
                the term designated person means a person who is 
                designated under--</DELETED>
                        <DELETED>    (i) an applicable Executive 
                        order;</DELETED>
                        <DELETED>    (ii) an applicable United Nations 
                        Security Council resolution; or</DELETED>
                        <DELETED>    (iii) section 104 of the North 
                        Korea Sanctions and Policy Enhancement Act of 
                        2016 (22 U.S.C. 9204).</DELETED>
        <DELETED>    (5) North korean financial institution.--The term 
        ``North Korean financial institution'' includes--</DELETED>
                <DELETED>    (A) any North Korean financial 
                institution, as defined in section 3 of the North Korea 
                Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
                9202);</DELETED>
                <DELETED>    (B) any financial agency, as defined in 
                section 5312 of title 31, United States Code, that is 
                owned or controlled by the Government of North 
                Korea;</DELETED>
                <DELETED>    (C) any money transmitting business, as 
                defined in section 5330(d) of title 31, United States 
                Code, that is owned or controlled by the Government of 
                North Korea; and</DELETED>
                <DELETED>    (D) any financial institution that is a 
                joint venture between any person and the Government of 
                North Korea.</DELETED>
        <DELETED>    (6) Secretary.--Unless otherwise specified, the 
        term ``Secretary'' means the Secretary of the 
        Treasury.</DELETED>
        <DELETED>    (7) United states financial institution.--The term 
        ``United States financial institution'' means a financial 
        institution that--</DELETED>
                <DELETED>    (A) is a United States person, regardless 
                of where the person operates; or</DELETED>
                <DELETED>    (B) operates or does business in the 
                United States, including by conducting wire transfers 
                through correspondent banks in the United 
                States.</DELETED>
        <DELETED>    (8) United states person.--The term ``United 
        States person'' means--</DELETED>
                <DELETED>    (A) a citizen or resident of the United 
                States or a national of the United States (as defined 
                in section 101(a) of the Immigration and Nationality 
                Act (8 U.S.C. 1101(a))); and</DELETED>
                <DELETED>    (B) an entity that is organized under the 
                laws of the United States or any jurisdiction within 
                the United States, including a foreign subsidiary of 
                such an entity.</DELETED>

  <DELETED>TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO 
              TRANSACTIONS INVOLVING NORTH KOREA</DELETED>

<DELETED>SEC. 101. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS 
              PROVIDING SUPPORT TO THE GOVERNMENT OF NORTH 
              KOREA.</DELETED>

<DELETED>    (a) Report on Noncompliant Financial Institutions.--
</DELETED>
        <DELETED>    (1) In general.--Not later than 60 days after the 
        date of the enactment of this Act, and every 180 days 
        thereafter, the President shall submit to the appropriate 
        congressional committees and publish in the Federal Register a 
        report that contains a list of any financial institutions that 
        the President has identified as having engaged in, during the 
        one-year period preceding the submission of the report, the 
        following conduct:</DELETED>
                <DELETED>    (A) Dealing in North Korean covered 
                property.</DELETED>
                <DELETED>    (B) Providing correspondent or interbank 
                services to one or more North Korean financial 
                institutions.</DELETED>
                <DELETED>    (C) Failing to apply enhanced due 
                diligence to prevent North Korean financial 
                institutions from gaining access to correspondent or 
                interbank services in the United States or provided by 
                United States persons.</DELETED>
                <DELETED>    (D) Knowingly operating or participating 
                with or on behalf of an offshore United States dollar 
                clearing system that conducts transactions involving 
                the Government of North Korea or North Korean covered 
                property.</DELETED>
                <DELETED>    (E) Conducting or facilitating one or more 
                significant transactions in North Korean covered 
                property involving covered goods (as that term is 
                defined in section 1027.100 of title 31, Code of 
                Federal Regulations, or any successor regulation) or 
                the currency of a country other than the country in 
                which the person is operating at the time of the 
                transaction.</DELETED>
        <DELETED>    (2) Form of report.--Each report required under 
        paragraph (1) shall be submitted in unclassified form but may 
        contain a classified annex.</DELETED>
<DELETED>    (b) Imposition of Sanctions.--</DELETED>
        <DELETED>    (1) In general.--If the President determines that 
        a financial institution identified under subsection (a) has 
        knowingly engaged in conduct described in that subsection, the 
        President shall apply the following sanctions with respect to 
        that financial institution:</DELETED>
                <DELETED>    (A) Prohibit the designation of the 
                financial institution, or the continuation of any prior 
                designation of the financial institution, as a primary 
                dealer in United States Government debt 
                instruments.</DELETED>
                <DELETED>    (B) Prohibit the financial institution 
                from serving as agent of the United States Government 
                or as a repository for funds of the United States 
                Government.</DELETED>
                <DELETED>    (C) One or more of the 
                following:</DELETED>
                        <DELETED>    (i) Prohibit the opening, and 
                        prohibit or impose strict conditions on the 
                        maintaining, in the United States of any 
                        correspondent account or payable-through 
                        account by the financial institution if the 
                        financial institution is a foreign financial 
                        institution.</DELETED>
                        <DELETED>    (ii) Prohibit any transactions in 
                        foreign exchange that are subject to the 
                        jurisdiction of the United States and in which 
                        the financial institution has any 
                        interest.</DELETED>
                        <DELETED>    (iii) In accordance with the 
                        International Emergency Economic Powers Act (50 
                        U.S.C. 1701 et seq.), block and prohibit all 
                        transactions in all property and interests in 
                        property of the financial institution if such 
                        property and interests in property are in the 
                        United States, come within the United States, 
                        or are or come within the possession or control 
                        of a United States person.</DELETED>
        <DELETED>    (2) Civil penalties.--If the President determines 
        that a financial institution identified under subsection (a) 
        that is a United States financial institution has knowingly 
        engaged in conduct described in that subsection--</DELETED>
                <DELETED>    (A) if the financial institution has taken 
                reasonable steps to prevent a recurrence of conduct 
                described in that subsection and is cooperating fully 
                with the efforts of the President to enforce the 
                provisions of this Act--</DELETED>
                        <DELETED>    (i) unless the financial 
                        institution is described in clause (ii), the 
                        President shall impose a civil penalty not to 
                        exceed $100,000 for each reportable act 
                        described in subparagraphs (A) through (E) of 
                        subsection (a)(1) that is knowingly conducted; 
                        or</DELETED>
                        <DELETED>    (ii) if the financial institution 
                        has not previously been reported for similar 
                        conduct under subsection (a), the President 
                        shall issue a cautionary letter to that 
                        financial institution; or</DELETED>
                <DELETED>    (B) if the financial institution is not a 
                financial institution described in subparagraph (A), 
                the President shall impose a civil penalty not to 
                exceed $250,000 for each reportable act described in 
                subparagraphs (A) through (E) of subsection (a)(1) that 
                is knowingly conducted.</DELETED>
<DELETED>    (c) Suspension for Law Enforcement Purposes.--The 
President may suspend the submission of the reports described in 
subsection (a) and the application of sanctions and penalties described 
in subsection (b) for a one-year period if--</DELETED>
        <DELETED>    (1) such reporting and application of sanctions 
        and penalties could compromise an ongoing law enforcement 
        investigation or prosecution; or</DELETED>
        <DELETED>    (2) a criminal prosecution is pending, or a 
        criminal or civil fine or penalty has been imposed or 
        conditionally deferred, for the conduct reported pursuant to 
        subsection (a).</DELETED>
<DELETED>    (d) Suspension and Termination of Sanctions and 
Penalties.--</DELETED>
        <DELETED>    (1) Suspension.--The President may suspend the 
        application of any sanctions or penalties under subsection (b) 
        for a period of not more than one year if the President 
        certifies to the appropriate congressional committees that the 
        Government of North Korea is taking steps toward--</DELETED>
                <DELETED>    (A) the verification of its compliance 
                with applicable United Nations Security Council 
                Resolutions; and</DELETED>
                <DELETED>    (B) fully accounting for and repatriating 
                United States citizens and permanent residents 
                (including deceased United States citizens and 
                permanent residents)--</DELETED>
                        <DELETED>    (i) abducted or unlawfully held 
                        captive by the Government of North Korea; 
                        or</DELETED>
                        <DELETED>    (ii) detained in violation of the 
                        Agreement Concerning a Military Armistice in 
                        Korea, signed at Panmunjom July 27, 1953 
                        (commonly referred to as the ``Korean War 
                        Armistice Agreement'').</DELETED>
        <DELETED>    (2) Renewal of suspension.--The President may 
        renew a suspension described in paragraph (1) for additional 
        periods of not more than 180 days if the President certifies to 
        the appropriate congressional committees that the Government of 
        North Korea continues to take steps as described in paragraph 
        (1).</DELETED>
        <DELETED>    (3) Termination of sanctions.--Subject to 
        subsection (f), the President may terminate the application of 
        any sanctions or penalties under subsection (b) if the 
        President certifies that the Government of North Korea has made 
        significant progress towards--</DELETED>
                <DELETED>    (A) completely, verifiably, and 
                irreversibly dismantling all of its nuclear, chemical, 
                biological, and radiological weapons programs, 
                including all programs for the development of systems 
                designed in whole or in part for the delivery of such 
                weapons; and</DELETED>
                <DELETED>    (B) fully accounting for and repatriating 
                United States citizens and permanent residents 
                (including deceased United States citizens and 
                permanent residents)--</DELETED>
                        <DELETED>    (i) abducted or unlawfully held 
                        captive by the Government of North Korea; 
                        or</DELETED>
                        <DELETED>    (ii) detained in violation of the 
                        Agreement Concerning a Military Armistice in 
                        Korea, signed at Panmunjom July 27, 1953 
                        (commonly referred to as the ``Korean War 
                        Armistice Agreement'').</DELETED>
<DELETED>    (e) Waiver.--Subject to subsection (f), the President may 
waive the application of sanctions or penalties under subsection (b) 
with respect to a financial institution if the President determines 
that the waiver is in the national security interest of the United 
States.</DELETED>
<DELETED>    (f) Congressional Review of Proposed Actions To Waive or 
Terminate Sanctions.--</DELETED>
        <DELETED>    (1) Submission to congress of proposed action.--
        </DELETED>
                <DELETED>    (A) In general.--Notwithstanding any other 
                provision of law, before taking any action described in 
                subparagraph (B), the President shall submit to the 
                appropriate congressional committees and leadership a 
                report that describes the proposed action and the 
                reasons for that action.</DELETED>
                <DELETED>    (B) Actions described.--An action 
                described in this subparagraph is--</DELETED>
                        <DELETED>    (i) an action to suspend, renew a 
                        suspension, or terminate under subsection (d) 
                        the application of sanctions or penalties under 
                        subsection (b); or</DELETED>
                        <DELETED>    (ii) with respect to sanctions or 
                        penalties under subsection (b) imposed by the 
                        President with respect to a person, an action 
                        to waive under subsection (e) the application 
                        of those sanctions or penalties with respect to 
                        that person.</DELETED>
                <DELETED>    (C) Description of type of action.--Each 
                report submitted under subparagraph (A) with respect to 
                an action described in subparagraph (B) shall include a 
                description of whether the action--</DELETED>
                        <DELETED>    (i) is not intended to 
                        significantly alter United States foreign 
                        policy with regard to North Korea; or</DELETED>
                        <DELETED>    (ii) is intended to significantly 
                        alter United States foreign policy with regard 
                        to North Korea.</DELETED>
                <DELETED>    (D) Inclusion of additional matter.--
                </DELETED>
                        <DELETED>    (i) In general.--Each report 
                        submitted under subparagraph (A) that relates 
                        to an action that is intended to significantly 
                        alter United States foreign policy with regard 
                        to North Korea shall include a description of--
                        </DELETED>
                                <DELETED>    (I) the significant 
                                alteration to United States foreign 
                                policy with regard to North 
                                Korea;</DELETED>
                                <DELETED>    (II) the anticipated 
                                effect of the action on the national 
                                security interests of the United 
                                States; and</DELETED>
                                <DELETED>    (III) the policy 
                                objectives for which the sanctions 
                                affected by the action were initially 
                                imposed.</DELETED>
                        <DELETED>    (ii) Requests from banking and 
                        financial services committees.--The Committee 
                        on Banking, Housing, and Urban Affairs of the 
                        Senate or the Committee on Financial Services 
                        of the House of Representatives may request the 
                        submission to the Committee of the matter 
                        described in subclauses (II) and (III) of 
                        clause (i) with respect to a report submitted 
                        under subparagraph (A) that relates to an 
                        action that is not intended to significantly 
                        alter United States foreign policy with regard 
                        to North Korea.</DELETED>
        <DELETED>    (2) Period for review by congress.--</DELETED>
                <DELETED>    (A) In general.--During the period of 30 
                calendar days beginning on the date on which the 
                President submits a report under paragraph (1)(A)--
                </DELETED>
                        <DELETED>    (i) in the case of a report that 
                        relates to an action that is not intended to 
                        significantly alter United States foreign 
                        policy with regard to North Korea, the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate and the Committee on 
                        Financial Services of the House of 
                        Representatives should, as appropriate, hold 
                        hearings and briefings and otherwise obtain 
                        information in order to fully review the 
                        report; and</DELETED>
                        <DELETED>    (ii) in the case of a report that 
                        relates to an action that is intended to 
                        significantly alter United States foreign 
                        policy with regard to North Korea, the 
                        Committee on Foreign Relations of the Senate 
                        and the Committee on Foreign Affairs of the 
                        House of Representatives should, as 
                        appropriate, hold hearings and briefings and 
                        otherwise obtain information in order to fully 
                        review the report.</DELETED>
                <DELETED>    (B) Exception.--The period for 
                congressional review under subparagraph (A) of a report 
                required to be submitted under paragraph (1)(A) shall 
                be 60 calendar days if the report is submitted on or 
                after July 10 and on or before September 7 in any 
                calendar year.</DELETED>
                <DELETED>    (C) Limitation on actions during initial 
                congressional review period.--Notwithstanding any other 
                provision of law, during the period for congressional 
                review provided for under subparagraph (A) of a report 
                submitted under paragraph (1)(A) proposing an action 
                described in paragraph (1)(B), including any additional 
                period for such review as applicable under the 
                exception provided in subparagraph (B), the President 
                may not take that action unless a joint resolution of 
                approval with respect to that action is enacted in 
                accordance with paragraph (3).</DELETED>
                <DELETED>    (D) Limitation on actions during 
                presidential consideration of a joint resolution of 
                disapproval.--Notwithstanding any other provision of 
                law, if a joint resolution of disapproval relating to a 
                report submitted under paragraph (1)(A) proposing an 
                action described in paragraph (1)(B) passes both Houses 
                of Congress in accordance with paragraph (3), the 
                President may not take that action for a period of 12 
                calendar days after the date of passage of the joint 
                resolution of disapproval.</DELETED>
                <DELETED>    (E) Limitation on actions during 
                congressional reconsideration of a joint resolution of 
                disapproval.--Notwithstanding any other provision of 
                law, if a joint resolution of disapproval relating to a 
                report submitted under paragraph (1)(A) proposing an 
                action described in paragraph (1)(B) passes both Houses 
                of Congress in accordance with paragraph (3), and the 
                President vetoes the joint resolution, the President 
                may not take that action for a period of 10 calendar 
                days after the date of the President's veto.</DELETED>
                <DELETED>    (F) Effect of enactment of a joint 
                resolution of disapproval.--Notwithstanding any other 
                provision of law, if a joint resolution of disapproval 
                relating to a report submitted under paragraph (1)(A) 
                proposing an action described in paragraph (1)(B) is 
                enacted in accordance with paragraph (3), the President 
                may not take that action.</DELETED>
        <DELETED>    (3) Joint resolutions of disapproval or 
        approval.--</DELETED>
                <DELETED>    (A) Joint resolutions of disapproval or 
                approval defined.--In this paragraph:</DELETED>
                        <DELETED>    (i) Joint resolution of 
                        approval.--The term ``joint resolution of 
                        approval'' means only a joint resolution of 
                        either House of Congress--</DELETED>
                                <DELETED>    (I) the title of which is 
                                as follows: ``A joint resolution 
                                approving the President's proposal to 
                                take an action relating to the 
                                application of certain sanctions with 
                                respect to North Korea.''; 
                                and</DELETED>
                                <DELETED>    (II) the sole matter after 
                                the resolving clause of which is the 
                                following: ``Congress approves of the 
                                action relating to the application of 
                                sanctions imposed with respect to North 
                                Korea proposed by the President in the 
                                report submitted to Congress under 
                                section 101(f)(1)(A) of the Banking 
                                Restrictions Involving North Korea 
                                (BRINK) Act of 2017 on _______ relating 
                                to ________.'', with the first blank 
                                space being filled with the appropriate 
                                date and the second blank space being 
                                filled with a short description of the 
                                proposed action.</DELETED>
                        <DELETED>    (ii) Joint resolution of 
                        disapproval.--The term ``joint resolution of 
                        disapproval'' means only a joint resolution of 
                        either House of Congress--</DELETED>
                                <DELETED>    (I) the title of which is 
                                as follows: ``A joint resolution 
                                disapproving the President's proposal 
                                to take an action relating to the 
                                application of certain sanctions with 
                                respect to North Korea.''; 
                                and</DELETED>
                                <DELETED>    (II) the sole matter after 
                                the resolving clause of which is the 
                                following: ``Congress disapproves of 
                                the action relating to the application 
                                of sanctions imposed with respect to 
                                North Korea proposed by the President 
                                in the report submitted to Congress 
                                under section 101(f)(1)(A) of the 
                                Banking Restrictions Involving North 
                                Korea (BRINK) Act of 2017 on _______ 
                                relating to ________.'', with the first 
                                blank space being filled with the 
                                appropriate date and the second blank 
                                space being filled with a short 
                                description of the proposed 
                                action.</DELETED>
                <DELETED>    (B) Introduction.--During the period of 30 
                calendar days provided for under paragraph (2)(A), 
                including any additional period as applicable under the 
                exception provided in paragraph (2)(B), a joint 
                resolution of approval or joint resolution of 
                disapproval may be introduced--</DELETED>
                        <DELETED>    (i) in the House of 
                        Representatives, by the majority leader or the 
                        minority leader; and</DELETED>
                        <DELETED>    (ii) in the Senate, by the 
                        majority leader (or the majority leader's 
                        designee) or the minority leader (or the 
                        minority leader's designee).</DELETED>
                <DELETED>    (C) Floor consideration in house of 
                representatives.--</DELETED>
                        <DELETED>    (i) Reporting and discharge.--If a 
                        committee of the House of Representatives to 
                        which a joint resolution of approval or joint 
                        resolution of disapproval has been referred has 
                        not reported the joint resolution within 10 
                        calendar days after the date of referral, that 
                        committee shall be discharged from further 
                        consideration of the joint 
                        resolution.</DELETED>
                        <DELETED>    (ii) Proceeding to 
                        consideration.--Beginning on the third 
                        legislative day after each committee to which a 
                        joint resolution of approval or joint 
                        resolution of disapproval has been referred 
                        reports the joint resolution to the House or 
                        has been discharged from further consideration 
                        of the joint resolution, it shall be in order 
                        to move to proceed to consider the joint 
                        resolution in the House. All points of order 
                        against the motion are waived. Such a motion 
                        shall not be in order after the House has 
                        disposed of a motion to proceed on the joint 
                        resolution. The previous question shall be 
                        considered as ordered on the motion to its 
                        adoption without intervening motion. The motion 
                        shall not be debatable. A motion to reconsider 
                        the vote by which the motion is disposed of 
                        shall not be in order.</DELETED>
                        <DELETED>    (iii) Consideration.--The joint 
                        resolution of approval or joint resolution of 
                        disapproval shall be considered as read. All 
                        points of order against the joint resolution 
                        and against its consideration are waived. The 
                        previous question shall be considered as 
                        ordered on the joint resolution to final 
                        passage without intervening motion except 2 
                        hours of debate equally divided and controlled 
                        by the sponsor of the joint resolution (or a 
                        designee) and an opponent. A motion to 
                        reconsider the vote on passage of the joint 
                        resolution shall not be in order.</DELETED>
                <DELETED>    (D) Consideration in the senate.--
                </DELETED>
                        <DELETED>    (i) Committee referral.--A joint 
                        resolution of approval or joint resolution of 
                        disapproval introduced in the Senate shall be--
                        </DELETED>
                                <DELETED>    (I) referred to the 
                                Committee on Banking, Housing, and 
                                Urban Affairs if the joint resolution 
                                relates to a report submitted under 
                                paragraph (1)(A) with respect to an 
                                action that is not intended to 
                                significantly alter United States 
                                foreign policy with regard to North 
                                Korea; and</DELETED>
                                <DELETED>    (II) referred to the 
                                Committee on Foreign Relations if the 
                                joint resolution relates to a report 
                                submitted under paragraph (1)(A) with 
                                respect to an action that is intended 
                                to significantly alter United States 
                                foreign policy with respect to North 
                                Korea.</DELETED>
                        <DELETED>    (ii) Reporting and discharge.--If 
                        the committee to which a joint resolution of 
                        approval or joint resolution of disapproval was 
                        referred has not reported the joint resolution 
                        within 10 calendar days after the date of 
                        referral of the joint resolution, that 
                        committee shall be discharged from further 
                        consideration of the joint resolution and the 
                        joint resolution shall be placed on the 
                        appropriate calendar.</DELETED>
                        <DELETED>    (iii) Proceeding to 
                        consideration.--Notwithstanding Rule XXII of 
                        the Standing Rules of the Senate, it is in 
                        order at any time after the Committee on 
                        Banking, Housing, and Urban Affairs or the 
                        Committee on Foreign Relations, as the case may 
                        be, reports a joint resolution of approval or 
                        joint resolution of disapproval to the Senate 
                        or has been discharged from consideration of 
                        such a joint resolution (even though a previous 
                        motion to the same effect has been disagreed 
                        to) to move to proceed to the consideration of 
                        the joint resolution, and all points of order 
                        against the joint resolution (and against 
                        consideration of the joint resolution) are 
                        waived. The motion to proceed is not debatable. 
                        The motion is not subject to a motion to 
                        postpone. A motion to reconsider the vote by 
                        which the motion is agreed to or disagreed to 
                        shall not be in order.</DELETED>
                        <DELETED>    (iv) Rulings of the chair on 
                        procedure.--Appeals from the decisions of the 
                        Chair relating to the application of the rules 
                        of the Senate, as the case may be, to the 
                        procedure relating to a joint resolution of 
                        approval or joint resolution of disapproval 
                        shall be decided without debate.</DELETED>
                        <DELETED>    (v) Consideration of veto 
                        messages.--Debate in the Senate of any veto 
                        message with respect to a joint resolution of 
                        approval or joint resolution of disapproval, 
                        including all debatable motions and appeals in 
                        connection with the joint resolution, shall be 
                        limited to 10 hours, to be equally divided 
                        between, and controlled by, the majority leader 
                        and the minority leader or their 
                        designees.</DELETED>
                <DELETED>    (E) Rules relating to senate and house of 
                representatives.--</DELETED>
                        <DELETED>    (i) Coordination with action by 
                        other house.--If, before the passage by one 
                        House of a joint resolution of approval or 
                        joint resolution of disapproval of that House, 
                        that House receives an identical joint 
                        resolution from the other House, the following 
                        procedures shall apply:</DELETED>
                                <DELETED>    (I) The joint resolution 
                                of the other House shall not be 
                                referred to a committee.</DELETED>
                                <DELETED>    (II) With respect to the 
                                joint resolution of the House receiving 
                                the joint resolution from the other 
                                House--</DELETED>
                                        <DELETED>    (aa) the procedure 
                                        in that House shall be the same 
                                        as if no joint resolution had 
                                        been received from the other 
                                        House; but</DELETED>
                                        <DELETED>    (bb) the vote on 
                                        passage shall be on the joint 
                                        resolution of the other 
                                        House.</DELETED>
                        <DELETED>    (ii) Treatment of a joint 
                        resolution of other house.--If one House fails 
                        to introduce a joint resolution of approval or 
                        joint resolution of disapproval, a joint 
                        resolution of approval or joint resolution of 
                        disapproval of the other House shall be 
                        entitled to expedited procedures in that House 
                        under this subsection.</DELETED>
                        <DELETED>    (iii) Treatment of house joint 
                        resolution in senate.--If, following passage of 
                        a joint resolution of approval or joint 
                        resolution of disapproval in the Senate, the 
                        Senate receives an identical joint resolution 
                        from the House of Representatives, that joint 
                        resolution shall be placed on the appropriate 
                        Senate calendar.</DELETED>
                        <DELETED>    (iv) Application to revenue 
                        measures.--The provisions of this subparagraph 
                        shall not apply in the House of Representatives 
                        to a joint resolution of approval or joint 
                        resolution of disapproval that is a revenue 
                        measure.</DELETED>
                <DELETED>    (F) Rules of house of representatives and 
                senate.--This paragraph is enacted by Congress--
                </DELETED>
                        <DELETED>    (i) as an exercise of the 
                        rulemaking power of the Senate and the House of 
                        Representatives, respectively, and as such is 
                        deemed a part of the rules of each House, 
                        respectively, but applicable only with respect 
                        to the procedure to be followed in that House 
                        in the case of a joint resolution of approval 
                        or joint resolution of disapproval, and 
                        supersedes other rules only to the extent that 
                        it is inconsistent with such rules; 
                        and</DELETED>
                        <DELETED>    (ii) with full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedure 
                        of that House) at any time, in the same manner, 
                        and to the same extent as in the case of any 
                        other rule of that House.</DELETED>
<DELETED>    (g) Briefing Required.--Not later than 180 days after the 
date of the enactment of this Act, and every 180 days thereafter, the 
President shall brief the appropriate congressional committees on the 
status of efforts by the President to prevent conduct described in 
subparagraphs (A) through (E) of subsection (a)(1).</DELETED>
<DELETED>    (h) Rule of Construction.--Nothing in this section shall 
be construed to prohibit any person from, or authorize or require the 
imposition of sanctions with respect to any person for, conducting or 
facilitating any transaction for the sale or donation of agricultural 
commodities, food, medicine, or medical devices.</DELETED>
<DELETED>    (i) Appropriate Congressional Committees and Leadership 
Defined.--In this section, the term ``appropriate congressional 
committees and leadership'' means--</DELETED>
        <DELETED>    (1) the Committee on Banking, Housing, and Urban 
        Affairs, the Committee on Foreign Relations, and the majority 
        and minority leaders of the Senate; and</DELETED>
        <DELETED>    (2) the Committee on Financial Services, the 
        Committee on Foreign Affairs, and the Speaker, the majority 
        leader, and the minority leader of the House of 
        Representatives.</DELETED>

<DELETED>SEC. 102. EXPANSION OF LICENSING REQUIREMENTS FOR TRANSACTIONS 
              IN NORTH KOREAN COVERED PROPERTY.</DELETED>

<DELETED>    (a) License Required.--</DELETED>
        <DELETED>    (1) In general.--Except as provided in paragraph 
        (2), not later than 180 days after the date of the enactment of 
        this Act, the President shall prescribe regulations prohibiting 
        any transaction involving the manufacture, sale, purchase, 
        transfer, import, or export of North Korean covered property by 
        a United States person or conducted in the United 
        States.</DELETED>
        <DELETED>    (2) Exception.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), the Secretary may grant licenses and 
                permits for the following purposes:</DELETED>
                        <DELETED>    (i) For any purpose covered by an 
                        exemption or waiver under section 208 of the 
                        North Korea Sanctions and Policy Enhancement 
                        Act of 2016 (22 U.S.C. 9228), including 
                        humanitarian, diplomatic, consular, law 
                        enforcement, and other purposes.</DELETED>
                        <DELETED>    (ii) To import food products into 
                        North Korea if such food products are not 
                        defined as luxury goods.</DELETED>
                        <DELETED>    (iii) To meet an urgent and 
                        compelling humanitarian need.</DELETED>
                        <DELETED>    (iv) For activities to promote 
                        human rights in North Korea, the development of 
                        private agriculture and markets in North Korea, 
                        and the free flow of information to, from, and 
                        within North Korea.</DELETED>
                        <DELETED>    (v) To import agricultural 
                        products, medicine, or medical devices into 
                        North Korea if such products, medicine, or 
                        devices are classified as designated ``EAR 99'' 
                        under subchapter C of chapter VII of title 15, 
                        Code of Federal Regulations, or any successor 
                        regulations (commonly known as the ``Export 
                        Administration Regulations''), and not 
                        controlled under--</DELETED>
                                <DELETED>    (I) the Export 
                                Administration Act of 1979 (50 U.S.C. 
                                App. 2401 et seq.), as continued in 
                                effect under the International 
                                Emergency Economic Powers Act (50 
                                U.S.C. 1701 et seq.);</DELETED>
                                <DELETED>    (II) the Arms Export 
                                Control Act (22 U.S.C. 2751 et 
                                seq.);</DELETED>
                                <DELETED>    (III) part B of title VIII 
                                of the Nuclear Proliferation Prevention 
                                Act of 1994 (22 U.S.C. 6301 et seq.); 
                                or</DELETED>
                                <DELETED>    (IV) the Chemical and 
                                Biological Weapons Control and Warfare 
                                Elimination Act of 1991 (22 U.S.C. 5601 
                                et seq.).</DELETED>
                <DELETED>    (B) Exception.--The Secretary may not 
                grant a license or permit under subparagraph (A) for an 
                activity described in section 104(a) of the North Korea 
                Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
                9214(a)).</DELETED>
<DELETED>    (b) Penalties.--</DELETED>
        <DELETED>    (1) In general.--A person shall be fined not more 
        than $5,000,000, imprisoned for not more than 20 years, or 
        both, if the person knowingly--</DELETED>
                <DELETED>    (A) engages in a transaction described in 
                subsection (a)(1), except pursuant to a license or 
                permit granted under this section or regulations 
                prescribed pursuant to this section; or</DELETED>
                <DELETED>    (B) evades a requirement to obtain a 
                license or permit under this section or a regulations 
                prescribed pursuant to this section.</DELETED>
        <DELETED>    (2) Forfeiture of property.--Any property, real or 
        personal, that is involved in a transaction that is a violation 
        of subsection (a)(1), is involved in an attempt to conduct such 
        a transaction, or constitutes or is derived from proceeds 
        traceable to such a transaction, is subject to forfeiture to 
        the United States.</DELETED>
<DELETED>    (c) Report Required.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, and annually thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report listing any licenses or permits granted 
        under subsection (a).</DELETED>
        <DELETED>    (2) Form.--Each report required under paragraph 
        (1) shall be submitted in unclassified form but may include a 
        classified annex.</DELETED>
        <DELETED>    (3) Public availability.--Not later than 30 days 
        after the submission of a report under paragraph (1), the 
        Secretary of the Treasury and the Secretary of State shall each 
        publish the unclassified part of the report on a publicly 
        available Internet website of the Department of the Treasury 
        and the Department of State, as the case may be.</DELETED>
<DELETED>    (d) Termination of Requirements.--The President may 
terminate the prohibition on transactions described in subsection (a) 
and the imposition of penalties under subsection (b) if the President 
submits to the appropriate congressional committees the certification 
described in section 402 of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9252).</DELETED>
<DELETED>    (e) Modification of Definition of Specified Unlawful 
Activity for Money Laundering Purposes.--Section 1956(c)(7)(D) of title 
18, United States Code, is amended--</DELETED>
        <DELETED>    (1) by striking ``or section 104(a) of'' and 
        inserting ``section 104(a) of''; and</DELETED>
        <DELETED>    (2) by inserting before the semicolon at the end 
        the following: ``, or section 102(b) of the Banking 
        Restrictions Involving North Korea (BRINK) Act of 2017 
        (relating to transactions in certain North Korean 
        property)''.</DELETED>

<DELETED>SEC. 103. AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH 
              RESPECT TO THE PROVISION OF SPECIALIZED FINANCIAL 
              MESSAGING SERVICES TO NORTH KOREAN FINANCIAL INSTITUTIONS 
              AND SANCTIONED PERSONS.</DELETED>

<DELETED>    (a) Sense of Congress.--It is the sense of Congress that--
</DELETED>
        <DELETED>    (1) providers of specialized financial messaging 
        services have been used as a critical link between the 
        Government of North Korea and the international financial 
        system;</DELETED>
        <DELETED>    (2) the Financial Action Task Force has repeatedly 
        called for jurisdictions to apply countermeasures to protect 
        the financial system from the risks of money laundering and 
        proliferation financing emanating from North Korea;</DELETED>
        <DELETED>    (3) credible published reports have implicated the 
        Government of North Korea in stealing approximately $81,000,000 
        from the Bangladesh Bank and attempting to steal another 
        $951,000,000 from other banks using a financial messaging 
        service; and</DELETED>
        <DELETED>    (4) directly providing specialized financial 
        messaging services to, or enabling or facilitating direct or 
        indirect access to such messaging services for, any financial 
        institution designated by the United Nations Security Council 
        is inconsistent with applicable United Nations Security Council 
        resolutions.</DELETED>
<DELETED>    (b) Authorization of Imposition of Sanctions.--The 
President may impose sanctions pursuant to the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to a person 
if, on or after the date that is 90 days after the date of the 
enactment of this Act, the person knowingly and directly provides 
specialized financial messaging services to, or knowingly enables or 
facilitates direct or indirect access to such messaging services for--
</DELETED>
        <DELETED>    (1) a North Korean financial 
        institution;</DELETED>
        <DELETED>    (2) a person, including a financial institution, 
        that is designated pursuant to--</DELETED>
                <DELETED>    (A) an applicable Executive 
                order;</DELETED>
                <DELETED>    (B) an applicable United Nations Security 
                Council resolution; or</DELETED>
                <DELETED>    (C) section 104 of the North Korea 
                Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
                9214); or</DELETED>
        <DELETED>    (3) a person subject to sanctions under this 
        Act.</DELETED>
<DELETED>    (c) Enabling or Facilitating Access to Specialized 
Financial Messaging Services.--For purposes of this section, enabling 
or facilitating direct or indirect access to specialized financial 
messaging services to a person described in paragraph (1) or (2) of 
subsection (b) includes doing so by serving as an intermediary 
financial institution with access to such messaging services.</DELETED>
<DELETED>    (d) Suspension and Termination of Sanctions.--</DELETED>
        <DELETED>    (1) Suspension.--The President may suspend the 
        application of any sanctions under subsection (b) for a period 
        of not more than one year if the President certifies to the 
        appropriate congressional committees that the Government of 
        North Korea is taking steps toward--</DELETED>
                <DELETED>    (A) the verification of its compliance 
                with applicable United Nations Security Council 
                Resolutions; and</DELETED>
                <DELETED>    (B) fully accounting for and repatriating 
                United States citizens and permanent residents 
                (including deceased United States citizens and 
                permanent residents)--</DELETED>
                        <DELETED>    (i) abducted or unlawfully held 
                        captive by the Government of North Korea; 
                        or</DELETED>
                        <DELETED>    (ii) detained in violation of the 
                        Agreement Concerning a Military Armistice in 
                        Korea, signed at Panmunjom July 27, 1953 
                        (commonly referred to as the ``Korean War 
                        Armistice Agreement'').</DELETED>
        <DELETED>    (2) Renewal of suspension.--The President may 
        renew a suspension described in paragraph (1) for additional 
        periods of not more than 180 days if the President certifies to 
        the appropriate congressional committees that the Government of 
        North Korea continues to take steps as described in paragraph 
        (1).</DELETED>
        <DELETED>    (3) Termination of sanctions.--The President may 
        terminate the application of any sanctions under subsection (b) 
        if the President certifies that the Government of North Korea 
        has made significant progress towards--</DELETED>
                <DELETED>    (A) completely, verifiably, and 
                irreversibly dismantling all of its nuclear, chemical, 
                biological, and radiological weapons programs, 
                including all programs for the development of systems 
                designed in whole or in part for the delivery of such 
                weapons; and</DELETED>
                <DELETED>    (B) fully accounting for and repatriating 
                United States citizens and permanent residents 
                (including deceased United States citizens and 
                permanent residents)--</DELETED>
                        <DELETED>    (i) abducted or unlawfully held 
                        captive by the Government of North Korea; 
                        or</DELETED>
                        <DELETED>    (ii) detained in violation of the 
                        Agreement Concerning a Military Armistice in 
                        Korea, signed at Panmunjom July 27, 1953 
                        (commonly referred to as the ``Korean War 
                        Armistice Agreement'').</DELETED>

<DELETED>SEC. 104. AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH 
              RESPECT TO GOVERNMENTS THAT FAIL TO COMPLY WITH UNITED 
              NATIONS SECURITY COUNCIL SANCTIONS AGAINST NORTH 
              KOREA.</DELETED>

<DELETED>    (a) Briefing Required.--Not later than 90 days after the 
date of the enactment of this Act, the President shall brief the 
appropriate congressional committees regarding each government of a 
foreign country that the President has identified as failing to--
</DELETED>
        <DELETED>    (1) close the branches, subsidiaries, or 
        representative offices of North Korean financial institutions 
        in that country;</DELETED>
        <DELETED>    (2) expel representatives of North Korean 
        financial institutions;</DELETED>
        <DELETED>    (3) close the representative offices and expel the 
        representatives of persons designated under applicable United 
        Nations Security Council resolutions;</DELETED>
        <DELETED>    (4) prohibit joint ventures with North Korean 
        financial institutions;</DELETED>
        <DELETED>    (5) deregister any vessel that constitutes North 
        Korean covered property; or</DELETED>
        <DELETED>    (6) expel North Korean nationals, including 
        diplomats, working on behalf of persons designated under 
        applicable United Nations Security Council 
        resolutions.</DELETED>
<DELETED>    (b) Publication.--The Secretary of the Treasury shall 
publish in the Federal Register the names of each foreign country that 
has failed to carry out the activities described in paragraphs (1) 
through (6) of subsection (a).</DELETED>
<DELETED>    (c) Sanctions Authorized.--With respect to any government 
of a foreign country included in the briefing under subsection (a), the 
President may, until such time as the President determines that the 
government has taken substantial steps to terminate conduct described 
in that subsection, impose one or more of the following sanctions with 
respect to that government:</DELETED>
        <DELETED>    (1) Prohibit or curtail the export of any goods or 
        technology to that foreign country pursuant to the authorities 
        provided in section 6 of the Export Administration Act of 1979 
        (50 U.S.C. 4605) (as continued in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.)).</DELETED>
        <DELETED>    (2) Withhold assistance under the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2151 et seq.) to that 
        government.</DELETED>
        <DELETED>    (3) Instruct the United States executive director 
        at each international financial institution (as defined in 
        section 1701(c) of the International Financial Institutions Act 
        (22 U.S.C. 262r(c))) to use the voice and vote of the United 
        States to oppose the provision of loans, benefits, or other use 
        of the funds of the institution to that government.</DELETED>
<DELETED>    (d) Rule of Construction.--This section shall not be 
construed to limit the use of other sanctions authorities available to 
the President in response to conduct described in subsection 
(a).</DELETED>

<DELETED>SEC. 105. GRANTS TO CONDUCT RESEARCH ON FINANCIAL NETWORKS AND 
              FINANCIAL METHODS OF THE GOVERNMENT OF NORTH 
              KOREA.</DELETED>

<DELETED>    (a) Grants Authorized.--</DELETED>
        <DELETED>    (1) In general.--The President, acting through the 
        Attorney General, the Secretary of State, the Secretary of the 
        Treasury, or the Director of National Intelligence, may award 
        grants to, and enter into cooperative agreements with, States, 
        units of local government, nongovernmental organizations, and 
        relevant international organizations to further the purposes of 
        this title and provide data to address the issues identified in 
        section 2.</DELETED>
        <DELETED>    (2) Research initiatives.--Grants awarded and 
        cooperative agreements entered into under paragraph (1) shall 
        include grants and agreements for the purpose of conducting 
        research initiatives on the following:</DELETED>
                <DELETED>    (A) The methods used by the Government of 
                North Korea to deal in, transact in, or conceal the 
                ownership, control, or origin of North Korean covered 
                property.</DELETED>
                <DELETED>    (B) The relationship between proliferation 
                by the Government of North Korea and the financial 
                industry or financial institutions.</DELETED>
                <DELETED>    (C) The export by any person to the United 
                States of North Korean covered property.</DELETED>
                <DELETED>    (D) The involvement of any person in human 
                trafficking involving citizens or nationals of North 
                Korea.</DELETED>
                <DELETED>    (E) Information relating to transactions 
                described in section 102(a).</DELETED>
                <DELETED>    (F) Information relating to activities 
                described in section 104(a).</DELETED>
                <DELETED>    (G) Information relating to the 
                identification, blocking, and release of property or 
                proceeds described in section 107(a).</DELETED>
                <DELETED>    (H) The effectiveness of law enforcement 
                and diplomatic initiatives of Federal, State, and 
                foreign governments to comply with the provisions of 
                applicable United Nations Security Council 
                resolutions.</DELETED>
                <DELETED>    (I) The effectiveness of compliance 
                programs within the financial industry to ensure 
                compliance with applicable United Nations Security 
                Council resolutions.</DELETED>
<DELETED>    (b) Interagency Coordination.--The President shall ensure 
that any information collected pursuant to subsection (a) is shared 
among the agencies involved in investigations described in section 
102(b) of the North Korea Sanctions and Policy Enhancement Act of 2016 
(22 U.S.C. 9212).</DELETED>
<DELETED>    (c) Authorization of Appropriations.--There is authorized 
to be appropriated for each of fiscal years 2018 through 2021 such sums 
as may be necessary to carry out this section.</DELETED>

<DELETED>SEC. 106. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF 
              BENEFICIAL OWNERSHIP RULES TO ACCESS THE INTERNATIONAL 
              FINANCIAL SYSTEM.</DELETED>

<DELETED>    (a) In General.--Not later than November 11, 2018, the 
Director of the Financial Crimes Enforcement Network of the Department 
of the Treasury shall submit to the appropriate congressional 
committees and publish in the Federal Register a report setting forth 
the findings of the Director regarding how the Government of North 
Korea is using laws regarding beneficial ownership of property to 
access the international financial system.</DELETED>
<DELETED>    (b) Elements.--The Director shall include in the report 
required under subsection (a) proposals for such legislative and 
administrative action as the Director considers appropriate.</DELETED>

<DELETED>SEC. 107. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF 
              PROPERTY OF NORTH KOREAN OFFICIALS.</DELETED>

<DELETED>    (a) In General.--It is the sense of Congress that the 
President should collaborate with the Stolen Asset Recovery Initiative 
of the World Bank Group and the United Nations Office on Drugs and 
Crime to prioritize the identification, blocking, and release for 
humanitarian purposes of--</DELETED>
        <DELETED>    (1) any property owned or controlled by a North 
        Korean official; or</DELETED>
        <DELETED>    (2) any significant proceeds of kleptocracy by the 
        Government of North Korea or a North Korean official.</DELETED>
<DELETED>    (b) North Korean Official Defined.--In this section, the 
term ``North Korean official'' includes--</DELETED>
        <DELETED>    (1) the individuals described in section 
        304(a)(2)(B) of the North Korea Sanctions and Policy 
        Enhancement Act of 2016 (22 U.S.C. 9243(a)(2)(B)); 
        and</DELETED>
        <DELETED>    (2) such additional officials as the President may 
        determine to be officials of the Government of North 
        Korea.</DELETED>

<DELETED>SEC. 108. SENSE OF CONGRESS REGARDING THE KAESONG INDUSTRIAL 
              COMPLEX.</DELETED>

<DELETED>    (a) Findings.--Congress finds the following:</DELETED>
        <DELETED>    (1) On October 14, 2006, the United Nations 
        Security Council adopted Resolution 1718, paragraph 8(d) of 
        which requires member states of the United Nations to ensure 
        that persons under their jurisdiction prevent any funds, 
        financial assets, and economic resources from being used by 
        persons or entities engaged in or proving support for the 
        nuclear, chemical, or biological weapons programs of North 
        Korea or the ballistic missile programs of North 
        Korea.</DELETED>
        <DELETED>    (2) On April 11, 2011, the President signed 
        Executive Order 13570 (50 U.S.C. 1701 note; relating to 
        prohibiting certain transactions with respect to North Korea), 
        which prohibits the importation into the United States, 
        directly or indirectly, of any goods, services, or technology 
        from North Korea, except as provided in statute or in licenses, 
        regulations, orders, or directives that may be issued pursuant 
        to that Executive order.</DELETED>
        <DELETED>    (3) In April 2013, the Under Secretary of the 
        Treasury for Terrorism and Financial Intelligence said, in 
        reference to the Kaesong Industrial Complex, ``Precisely what 
        North Koreans do with earnings from Kaesong, I think, is 
        something that we are concerned about.''.</DELETED>
        <DELETED>    (4) In February 2016, on announcing the suspension 
        of operations at the Kaesong Industrial Complex, the 
        Unification Ministry of the Republic of Korea stated that the 
        Government of North Korea may have used the proceeds from the 
        Kaesong Industrial Complex to finance its nuclear weapons 
        program.</DELETED>
        <DELETED>    (5) On November 30, 2016, the United States 
        Security Council approved Resolution 2321, paragraph 32 of 
        which requires member states of the United Nations to prohibit 
        public and private financial support for trade with North Korea 
        from within their territories or by persons subject to their 
        jurisdiction, including the granting of export credits, 
        guarantees, or insurance to persons involved in such trade, 
        except as approved in advance by a committee appointed by the 
        Security Council on a case-by-case basis.</DELETED>
<DELETED>    (b) Sense of Congress.--It is the sense of Congress that--
</DELETED>
        <DELETED>    (1) the United States stands in solidarity with 
        its ally in the Republic of Korea, and has expressed that 
        solidarity with the sacrifice of 36,914 people of the United 
        States and with the continued presence of 29,500 members of the 
        Armed Forces of the United States in the Republic of 
        Korea;</DELETED>
        <DELETED>    (2) the nuclear weapons program of North Korea 
        poses a grave and imminent threat to the freedom and security 
        of both the United States and the Republic of Korea;</DELETED>
        <DELETED>    (3) the Kaesong Industrial Complex yielded few, if 
        any, apparent benefits with regard to the reform, 
        liberalization, or disarmament of North Korea;</DELETED>
        <DELETED>    (4) the unconditional provision of revenue from 
        the Kaesong Industrial Complex to the Government of North Korea 
        undermines the financial pressure necessary to strict and 
        effective enforcement of United Nations Security Council 
        sanctions;</DELETED>
        <DELETED>    (5) the strict and effective enforcement of United 
        Nations Security Council sanctions is the last plausible option 
        to achieve the complete, verifiable, irreversible, and peaceful 
        nuclear disarmament of North Korea; and</DELETED>
        <DELETED>    (6) the Kaesong Industrial Complex should not be 
        reopened until the Government of North Korea has completely, 
        verifiably, and irreversibly dismantled all of its nuclear, 
        chemical, biological, and radiological weapons programs, 
        including all programs for the development of systems designed 
        in whole or in part for the delivery of such weapons.</DELETED>

        <DELETED>TITLE II--DIVESTMENT FROM NORTH KOREA</DELETED>

<DELETED>SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST 
              FROM COMPANIES THAT INVEST IN NORTH KOREA.</DELETED>

<DELETED>    (a) Sense of Congress.--It is the sense of Congress that 
the United States should support the decision of any State or local 
government, for moral, prudential, or reputational reasons, to divest 
from, or prohibit the investment of assets of the State or local 
government in, a person that engages in investment activities involving 
North Korean covered property if North Korea is subject to economic 
sanctions imposed by the United States or the United Nations Security 
Council.</DELETED>
<DELETED>    (b) Authority To Divest.--Notwithstanding any other 
provision of law, a State or local government may adopt and enforce 
measures that meet the requirements of subsection (c) to divest the 
assets of the State or local government from, or prohibit investment of 
the assets of the State or local government in, any person that the 
State or local government determines, using credible information 
available to the public, engages in investment activities involving 
North Korean covered property of a value of more than 
$10,000.</DELETED>
<DELETED>    (c) Requirements.--Any measure taken by a State or local 
government under subsection (b) shall meet the following 
requirements:</DELETED>
        <DELETED>    (1) Notice.--The State or local government shall 
        provide written notice to each person with respect to which a 
        measure under this section is to be applied.</DELETED>
        <DELETED>    (2) Timing.--The measure applied under this 
        section shall apply to a person not earlier than the date that 
        is 90 days after the date on which written notice under 
        paragraph (1) is provided to the person.</DELETED>
        <DELETED>    (3) Opportunity to demonstrate compliance.--
        </DELETED>
                <DELETED>    (A) In general.--The State or local 
                government shall provide to each person with respect to 
                which a measure is to be applied under this section an 
                opportunity to demonstrate to the State or local 
                government that the person does not engage in 
                investment activities in North Korean covered 
                property.</DELETED>
                <DELETED>    (B) Nonapplication.--If a person with 
                respect to which a measure is to be applied under this 
                section demonstrates to the State or local government 
                under subparagraph (A) that the person does not engage 
                in investment activities in North Korean covered 
                property, the measure shall not apply to that 
                person.</DELETED>
        <DELETED>    (4) Sense of congress on avoiding erroneous 
        targeting.--It is the sense of Congress that a State or local 
        government should not adopt a measure under subsection (b) with 
        respect to a person unless the State or local government has--
        </DELETED>
                <DELETED>    (A) made every effort to avoid erroneously 
                targeting the person; and</DELETED>
                <DELETED>    (B) verified that the person engages in 
                investment activities in North Korean covered 
                property.</DELETED>
<DELETED>    (d) Notice to Department of Justice.--Not later than 30 
days after a State or local government applies a measure under this 
section, the State or local government shall notify the Attorney 
General of that measure.</DELETED>
<DELETED>    (e) Authorization for Prior Applied Measures.--</DELETED>
        <DELETED>    (1) In general.--Notwithstanding any other 
        provision of this section or any other provision of law, a 
        State or local government may enforce a measure (without regard 
        to the requirements of subsection (c), except as provided in 
        paragraph (2)) applied by the State or local government before 
        the date of the enactment of this Act that provides for the 
        divestment of assets of the State or local government from, or 
        prohibits the investment of the assets of the State or local 
        government in, any person that the State or local government 
        determines, using credible information available to the public, 
        engages in investment activities in North Korean covered 
        property that are identified in that measure.</DELETED>
        <DELETED>    (2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1), (2), and (3)(A) of subsection (c) on and 
        after the date that is two years after the date of the 
        enactment of this Act.</DELETED>
<DELETED>    (f) No Preemption.--A measure applied by a State or local 
government authorized under subsection (b) or (e) is not preempted by 
any Federal law.</DELETED>
<DELETED>    (g) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Asset.--</DELETED>
                <DELETED>    (A) In general.--Except as provided in 
                subparagraph (B), the term ``asset'' means public 
                monies, and includes any pension, retirement, annuity, 
                endowment fund, or similar instrument, that is 
                controlled by a State or local government.</DELETED>
                <DELETED>    (B) Exception.--The term ``asset'' does 
                not include employee benefit plans covered by title I 
                of the Employee Retirement Income Security Act of 1974 
                (29 U.S.C. 1001 et seq.).</DELETED>
        <DELETED>    (2) Investment.--The term ``investment'' 
        includes--</DELETED>
                <DELETED>    (A) a commitment or contribution of funds 
                or property;</DELETED>
                <DELETED>    (B) a loan or other extension of credit; 
                and</DELETED>
                <DELETED>    (C) the entry into or renewal of a 
                contract for goods or services.</DELETED>
<DELETED>    (h) Effective Date.--</DELETED>
        <DELETED>    (1) In general.--Except as provided in paragraph 
        (2) and subsection (e), this section applies to measures 
        applied by a State or local government before, on, or after the 
        date of the enactment of this Act.</DELETED>
        <DELETED>    (2) Notice requirements.--Except as provided in 
        subsection (h), subsections (c) and (d) apply to measures 
        applied by a State or local government on or after the date of 
        the enactment of this Act.</DELETED>

<DELETED>SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY 
              ASSET MANAGERS.</DELETED>

<DELETED>    (a) In General.--Section 13(c)(1) of the Investment 
Company Act of 1940 (15 U.S.C. 80a-13(c)(1)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A) by striking ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in subparagraph (B) by striking the period and 
        inserting ``; or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(C) engage in investment activities 
                involving North Korean covered property, as defined in 
                section 3 of the Banking Restrictions Involving North 
                Korea (BRINK) Act of 2017.''.</DELETED>
<DELETED>    (b) Securities and Exchange Commission Regulations.--Not 
later than 120 days after the date of the enactment of this Act, the 
Securities and Exchange Commission shall issue any revisions the 
Securities and Exchange Commission determines to be necessary to the 
regulations requiring disclosure by each registered investment company 
that divests itself of securities in accordance with section 13(c) of 
the Investment Company Act of 1940 (15 U.S.C. 80a-13(c)), including in 
accordance with paragraph (1)(C) of that section, as added by 
subsection (a)(3).</DELETED>

<DELETED>SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN 
              INVESTMENTS.</DELETED>

<DELETED>    It is the sense of Congress that--</DELETED>
        <DELETED>    (1) a fiduciary of an employee benefit plan, as 
        defined in section 3(3) of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan 
        assets from, or avoid investing plan assets in, any person the 
        fiduciary determines engages in investment activities involving 
        North Korean covered property, if--</DELETED>
                <DELETED>    (A) the fiduciary makes that determination 
                using credible information that is available to the 
                public; and</DELETED>
                <DELETED>    (B) the fiduciary prudently determines 
                that the result of that divestment or avoidance of 
                investment would not be expected to provide the 
                employee benefit plan with--</DELETED>
                        <DELETED>    (i) a lower rate of return than 
                        alternative investments with commensurate 
                        degrees of risk; or</DELETED>
                        <DELETED>    (ii) a higher degree of risk than 
                        alternative investments with commensurate rates 
                        of return; and</DELETED>
        <DELETED>    (2) by divesting assets or avoiding the investment 
        of assets as described in paragraph (1), the fiduciary is not 
        breaching the responsibilities, obligations, or duties imposed 
        upon the fiduciary by subparagraph (A) or (B) of section 
        404(a)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1104(a)(1)).</DELETED>

<DELETED>SEC. 204. RULE OF CONSTRUCTION.</DELETED>

<DELETED>    Nothing in this Act or any other provision of law 
authorizing sanctions with respect to North Korea shall be construed to 
affect or displace--</DELETED>
        <DELETED>    (1) the authority of a State or local government 
        to issue and enforce rules governing the safety, soundness, and 
        solvency of a financial institution subject to its 
        jurisdiction; or</DELETED>
        <DELETED>    (2) the regulation and taxation by the several 
        States of the business of insurance, pursuant to the Act of 
        March 9, 1945 (59 Stat. 34, chapter 20; 15 U.S.C. 1011 et seq.) 
        (commonly known as the ``McCarran-Ferguson Act'').</DELETED>

           <DELETED>TITLE III--GENERAL AUTHORITIES</DELETED>

<DELETED>SEC. 301. RULEMAKING.</DELETED>

<DELETED>    The President may prescribe such rules and regulations as 
may be necessary to carry out this Act.</DELETED>

<DELETED>SEC. 302. AUTHORITY TO CONSOLIDATE REPORTS.</DELETED>

<DELETED>    (a) In General.--Any and all reports required to be 
submitted to the appropriate congressional committees under this Act 
that are subject to a deadline for submission consisting of the same 
unit of time may be consolidated into a single report that is submitted 
pursuant to that deadline.</DELETED>
<DELETED>    (b) Contents.--Any reports consolidated under subsection 
(a) shall contain all information required under this Act and any other 
elements that may be required by existing law.</DELETED>

<DELETED>SEC. 303. RULE OF CONSTRUCTION.</DELETED>

<DELETED>    Nothing in this Act shall be construed to limit the 
authority or obligation of the President--</DELETED>
        <DELETED>    (1) to apply the sanctions described in section 
        104 of the North Korea Sanctions and Policy Enhancement Act of 
        2016 (22 U.S.C. 9214) with regard to persons that meet the 
        criteria for designation under such section; or</DELETED>
        <DELETED>    (2) to exercise any other law enforcement 
        authorities available to the President.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Otto Warmbier 
Banking Restrictions Involving North Korea Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

             TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA

Sec. 101. Findings.
Sec. 102. Sense of Congress.
Sec. 103. Definitions.

         Subtitle A--Expansion of Sanctions and Related Matters

Sec. 111. Sanctions with respect to foreign financial institutions that 
                            provide financial services to certain 
                            sanctioned persons.
Sec. 112. Codification of Executive orders relating to sanctions with 
                            respect to North Korea.
Sec. 113. Expansion of mandatory designations under North Korea 
                            Sanctions and Policy Enhancement Act of 
                            2016.
Sec. 114. Extension of applicability period of proliferation prevention 
                            sanctions.
Sec. 115. Sense of Congress on identification and blocking of property 
                            of North Korean officials.
Sec. 116. Modification of report on implementation of United Nations 
                            Security Council resolutions by other 
                            governments.
Sec. 117. Report on use by the Government of North Korea of beneficial 
                            ownership rules to access the international 
                            financial system.
Sec. 118. North Korea strategy.

             Subtitle B--Congressional Review and Oversight

Sec. 121. Notification of termination or suspension of sanctions.
Sec. 122. Reports on certain licensing actions.
Sec. 123. Briefings on implementation and enforcement of sanctions.
Sec. 124. Report on financial networks and financial methods of the 
                            Government of North Korea.
Sec. 125. Report on North Korean cyber capabilities and threats to 
                            United States economic and security 
                            interests.
Sec. 126. Report on countries of concern with respect to transshipment, 
                            reexportation, or diversion of certain 
                            items to North Korea.

                      Subtitle C--General Matters

Sec. 131. Rulemaking.
Sec. 132. Authority to consolidate reports.
Sec. 133. Waivers, exemptions, and termination.
Sec. 134. Procedures for review of classified information.
Sec. 135. Briefing on resourcing of sanctions programs.
Sec. 136. Briefing on proliferation financing.

                 TITLE II--DIVESTMENT FROM NORTH KOREA

Sec. 201. Authority of State and local governments to divest from 
                            companies that invest in North Korea.
Sec. 202. Safe harbor for changes of investment policies by asset 
                            managers.
Sec. 203. Sense of Congress regarding certain ERISA plan investments.
Sec. 204. Rule of construction.

       TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Sense of Congress.
Sec. 304. Coordination of human trafficking issues by the Office of 
                            Terrorism and Financial Intelligence.
Sec. 305. Strengthening the role of anti-money laundering and other 
                            financial tools in combating human 
                            trafficking.
Sec. 306. Sense of Congress on resources to combat human trafficking.

                TITLE IV--DEFENSE PRODUCTION ACT MATTERS

Sec. 401. Limitation on cancellation of designation of Secretary of the 
                            Air Force as Department of Defense 
                            Executive Agent for a certain Defense 
                            Production Act program.

             TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) Since 2006, the United Nations Security Council has 
        approved 9 resolutions imposing sanctions against North Korea 
        under chapter VII of the United Nations Charter, which--
                    (A) prohibit the use, development, and 
                proliferation of weapons of mass destruction by the 
                Government of North Korea;
                    (B) prohibit the transfer of arms and related 
                materiel to or by the Government of North Korea;
                    (C) prohibit the transfer of luxury goods to North 
                Korea;
                    (D) restrict access by the Government of North 
                Korea to the financial system and require due diligence 
                on the part of financial institutions to prevent the 
                financing of proliferation involving the Government of 
                North Korea;
                    (E) restrict North Korean shipping, including the 
                reflagging of ships owned or controlled by the 
                Government of North Korea;
                    (F) limit the sale by the Government of North Korea 
                of precious metals, iron, coal, vanadium, and rare 
                earth minerals;
                    (G) prohibit the transfer to North Korea of rocket, 
                aviation, or jet fuel;
                    (H) prohibit new work authorization for North 
                Korean labors;
                    (I) prohibit exports of North Korean seafood;
                    (J) prohibit joint ventures or cooperative 
                commercial entities or expanding joint ventures with 
                North Korea;
                    (K) prohibit exports of North Korean textiles; and
                    (L) call on member countries of the United Nations 
                to interdict and inspect vessels suspected of 
                containing prohibited North Korean cargo.
            (2) The Government of North Korea has threatened to carry 
        out nuclear attacks against the United States, South Korea, and 
        Japan.
            (3) The Federal Bureau of Investigation has determined that 
        the Government of North Korea was responsible for cyberattacks 
        against entities in the United States and South Korea.
            (4) In May 2017, the Director of National Intelligence 
        found that ``North Korea has also expanded the size and 
        sophistication of its ballistic missile forces--from close-
        range ballistic missiles (CRBMs) to ICBMs--and continues to 
        conduct test launches. In 2016, North Korea conducted an 
        unprecedented number of ballistic missile tests. Pyongyang is 
        committed to developing a long-range, nuclear-armed missile 
        that is capable of posing a direct threat to the United States; 
        it has publicly displayed its road-mobile ICBMs on multiple 
        occasions. We assess that North Korea has taken steps toward 
        fielding an ICBM but has not flight-tested it.''.
            (5) The Government of North Korea tested its sixth and 
        largest nuclear device on September 3, 2017.
            (6) The Government of North Korea has increased the pace of 
        its missile testing, including the test of a submarine-launched 
        ballistic missile, potentially furthering the development of 
        the capability to attack the United States with a nuclear 
        weapon.
            (7) Financial transactions and investments that provide 
        financial resources to the Government of North Korea, and that 
        fail to incorporate adequate safeguards against the misuse of 
        those financial resources, pose an undue risk of contributing 
        to--
                    (A) weapons of mass destruction programs of that 
                Government; and
                    (B) efforts to evade restrictions required by the 
                United Nations Security Council on imports or exports 
                of arms and related materiel, services, or technology 
                by that Government.
            (8) The strict enforcement of sanctions is essential to the 
        efforts of the international community to achieve the peaceful, 
        complete, verifiable, and irreversible dismantlement of weapons 
        of mass destruction programs of the Government of North Korea.

SEC. 102. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States is committed to working with its 
        allies and partners to halt the nuclear and ballistic missile 
        programs of North Korea through a policy of maximum pressure 
        and diplomatic engagement;
            (2) the imposition of sanctions, including those under this 
        Act, should not be construed to limit the authority of the 
        President to fully engage in diplomatic negotiations to further 
        the policy objective described in paragraph (1);
            (3) the successful use of sanctions to halt the nuclear and 
        ballistic missile programs of North Korea is part of a broader 
        diplomatic and economic strategy that relies on effective 
        coordination among relevant Federal agencies and officials, as 
        well as with international partners of the United States; and
            (4) the coordination described in paragraph (3) should 
        include proper vetting of external messaging and communications 
        from all parts of the Executive branch to ensure that those 
        communications are an intentional component of and aligned with 
        the strategy of the United States with respect to North Korea.

SEC. 103. DEFINITIONS.

    (a) In General.--In this title, the terms ``applicable Executive 
order'', ``applicable United Nations Security Council resolution'', 
``appropriate congressional committees'', ``Government of North 
Korea'', ``North Korea'', and ``North Korean financial institution'' 
have the meanings given those terms in section 3 of the North Korea 
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as 
amended by subsection (b).
    (b) Amendments to Definitions in North Korea Sanctions and Policy 
Enhancement Act of 2016.--Section 3 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9202) is amended--
            (1) in paragraph (1)(A), in the matter preceding clause 
        (i), by striking ``Executive Order No. 13694'' and all that 
        follows through ``to the extent that'' and inserting the 
        following: ``Executive Order 13694 (50 U.S.C. 1701 note; 
        relating to blocking the property of certain persons engaging 
        in significant malicious cyber-enabled activities), Executive 
        Order 13722 (50 U.S.C. 1701 note; relating to blocking the 
        property of the Government of North Korea and the Workers' 
        Party of Korea, and prohibiting certain transactions with 
        respect to North Korea), or Executive Order 13810 (82 Fed. Reg. 
        44705; relating to imposing additional sanctions with respect 
        to North Korea), to the extent that''; and
            (2) in paragraph (2)(A), by striking ``or 2321 (2016)'' and 
        inserting ``2321 (2016), 2356 (2017), 2371 (2017), or 2375 
        (2017)''.

         Subtitle A--Expansion of Sanctions and Related Matters

SEC. 111. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT 
              PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS.

    (a) In General.--Title II of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by 
inserting after the item relating to section 201A the following:

``SEC. 201B. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS 
              THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED 
              PERSONS.

    ``(a) In General.--The Secretary of the Treasury shall impose one 
or more of the sanctions described in subsection (b) with respect to a 
foreign financial institution that the Secretary determines, on or 
after the date that is 90 days after the date of the enactment of the 
Otto Warmbier Banking Restrictions Involving North Korea Act of 2017, 
knowingly provides significant financial services to any person 
designated for the imposition of sanctions under--
            ``(1) subsection (a) or (b) of section 104;
            ``(2) an applicable Executive order; or
            ``(3) an applicable United Nations Security Council 
        resolution.
    ``(b) Sanctions Described.--The sanctions that may be imposed with 
respect to a foreign financial institution subject to subsection (a) 
are the following:
            ``(1) Asset blocking.--The Secretary may block and 
        prohibit, pursuant to the International Emergency Economic 
        Powers Act (50 U.S.C. 1701 et seq.), all transactions in all 
        property and interests in property of the foreign financial 
        institution if such property and interests in property are in 
        the United States, come within the United States, or are or 
        come within the possession or control of a United States 
        person.
            ``(2) Restrictions on correspondent and payable-through 
        accounts.--The Secretary may prohibit, or impose strict 
        conditions on, the opening or maintaining in the United States 
        of a correspondent account or a payable-through account by the 
        foreign financial institution.
    ``(c) Implementation; Penalties.--
            ``(1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            ``(2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section.
    ``(d) Regulations.--Not later than 120 days after the date of the 
enactment of the Otto Warmbier Banking Restrictions Involving North 
Korea Act of 2017, the President shall, as appropriate, prescribe 
regulations to carry out this section.
    ``(e) Definitions.--In this section:
            ``(1) Account; correspondent account; payable-through 
        account.--The terms `account', `correspondent account', and 
        `payable-through account' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            ``(2) Financial institution.--The term `financial 
        institution' means a financial institution specified in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 
        (M), or (Y) of section 5312(a)(2) of title 31, United States 
        Code.
            ``(3) Foreign financial institution.--The term `foreign 
        financial institution' shall have the meaning of that term as 
        determined by the Secretary of the Treasury.
            ``(4) Knowingly.--The term `knowingly', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.''.
    (b) Clerical Amendment.--The table of contents for the North Korea 
Sanctions and Policy Enhancement Act of 2016 is amended by inserting 
after the item relating to section 201A the following:

``201B. Sanctions with respect to foreign financial institutions that 
                            provide financial services to certain 
                            sanctioned persons.''.

SEC. 112. CODIFICATION OF EXECUTIVE ORDERS RELATING TO SANCTIONS WITH 
              RESPECT TO NORTH KOREA.

    (a) In General.--Section 210 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9230) is amended--
            (1) by striking ``United States sanctions'' and all that 
        follows through ``the date of the enactment of this Act'' and 
        inserting ``United States sanctions provided for in Executive 
        Order 13687 (50 U.S.C. 1701 note; relating to imposing 
        additional sanctions with respect to North Korea), Executive 
        Order 13694 (50 U.S.C. 1701 note; relating to blocking the 
        property of certain persons engaging in significant malicious 
        cyber-enabled activities), Executive Order 13722 (50 U.S.C. 
        1701 note; relating to blocking the property of the Government 
        of North Korea and the Workers' Party of Korea, and prohibiting 
        certain transactions with respect to North Korea), or Executive 
        Order 13810 (82 Fed. Reg. 44705; relating to imposing 
        additional sanctions with respect to North Korea), as such 
        Executive Orders are in effect on the day before the date of 
        the enactment of the Otto Warmbier Banking Restrictions 
        Involving North Korea Act of 2017'';
            (2) by striking ``the Government of North Korea, persons 
        acting for or on behalf of that Government, and persons owned 
        or controlled, directly or indirectly, by that Government or 
        persons acting for or on behalf of that Government,'' and 
        inserting ``persons subject to such sanctions''; and
            (3) by striking ``and 2094 (2013)'' and inserting ``2094 
        (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), and 
        2375 (2017)''.
    (b) Conforming Amendment.--Section 210 of the North Korea Sanctions 
and Policy Enhancement Act of 2016 (22 U.S.C. 9230) is amended in the 
section heading by striking ``sanctions with respect to north korean 
activities undermining cybersecurity'' and inserting ``executive orders 
relating to sanctions with respect to north korea''.
    (c) Clerical Amendment.--The table of contents for the North Korea 
Sanctions and Policy Enhancement Act of 2016 is amended by striking the 
item relating to section 210 and inserting the following:

``Sec. 210. Codification of Executive orders relating to sanctions with 
                            respect to North Korea.''.

SEC. 113. EXPANSION OF MANDATORY DESIGNATIONS UNDER NORTH KOREA 
              SANCTIONS AND POLICY ENHANCEMENT ACT OF 2016.

    (a) In General.--Section 104(a) of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9214(a)) is amended--
            (1) in paragraph (14), by striking ``or'' at the end;
            (2) by redesignating paragraph (15) as paragraph (23);
            (3) by inserting after paragraph (14) the following:
            ``(15) knowingly, directly or indirectly, purchased or 
        otherwise acquired from the Government of North Korea 
        significant quantities of coal, iron, or iron ore;
            ``(16) knowingly, directly or indirectly, provided to the 
        Government of North Korea coal, iron, or iron ore;
            ``(17) knowingly, directly or indirectly, purchased or 
        otherwise acquired textiles from the Government of North Korea;
            ``(18) knowingly facilitated a significant transfer of 
        funds or property of the Government of North Korea that 
        materially contributes to any violation of an applicable United 
        Nations Security Council resolution;
            ``(19) knowingly, directly or indirectly, purchased or 
        otherwise acquired significant types or amounts of seafood from 
        North Korea;
            ``(20) knowingly, directly or indirectly, engaged in, 
        facilitated, or was responsible for the exportation of workers 
        from North Korea in a manner intended to generate significant 
        revenue, directly or indirectly, for use by the Government of 
        North Korea or by the Workers' Party of Korea;
            ``(21) knowingly, directly or indirectly, sells or 
        transfers vessels to North Korea, except as specifically 
        approved by the United Nations Security Council;
            ``(22) knowingly contributed to--
                    ``(A) the bribery of an official of the Government 
                of North Korea or any person acting for or on behalf of 
                that official;
                    ``(B) the misappropriation, theft, or embezzlement 
                of public funds by, or for the benefit of, an official 
                of the Government of North Korea or any person acting 
                for or on behalf of that official; or
                    ``(C) the use of any proceeds of any activity 
                described in subparagraph (A) or (B); or''; and
            (4) in paragraph (23), as redesignated by paragraph (2), by 
        striking ``through (14)'' and inserting ``through (22)''.
    (b) Conforming Amendments.--The North Korea Sanctions and Policy 
Enhancement Act of 2016 is amended--
            (1) in section 104(b)(1) (22 U.S.C. 9214(b)(1))--
                    (A) by striking subparagraphs (B), (D), (E), (F), 
                and (L); and
                    (B) by redesignating subparagraphs (C), (G), (H), 
                (I), (J), (K), (M), and (N) as subparagraphs (B), (C), 
                (D), (E), (F), (G), (H), and (I), respectively; and
            (2) in section 302(b)(3) (22 U.S.C. 9241(b)(3)), by 
        striking ``section 104(b)(1)(M)'' and inserting ``section 
        104(a)(20)''.

SEC. 114. EXTENSION OF APPLICABILITY PERIOD OF PROLIFERATION PREVENTION 
              SANCTIONS.

    Section 203(b)(2) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9223(b)(2)) is amended by striking 
``2 years'' and inserting ``5 years''.

SEC. 115. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF PROPERTY 
              OF NORTH KOREAN OFFICIALS.

    It is the sense of Congress that the President should--
            (1) encourage international collaboration through the 
        Financial Action Task Force and its network of Financial Action 
        Task Force-style regional bodies to apply best practices in 
        disrupting money laundering related to kleptocracy and 
        corruption, especially as it relates to North Korea; and
            (2) prioritize multilateral efforts to identify and block--
                    (A) any property owned or controlled by a North 
                Korean official; and
                    (B) any significant proceeds of kleptocracy by the 
                Government of North Korea or a North Korean official.

SEC. 116. MODIFICATION OF REPORT ON IMPLEMENTATION OF UNITED NATIONS 
              SECURITY COUNCIL RESOLUTIONS BY OTHER GOVERNMENTS.

    Section 317 of the Korean Interdiction and Modernization of 
Sanctions Act (title III of Public Law 115-44) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by striking ``; or'' and 
                inserting a semicolon;
                    (B) by redesignating paragraph (4) as paragraph 
                (8); and
                    (C) by inserting after paragraph (3) the following:
            ``(4) prohibit, in the territories of such countries or by 
        persons subject to the jurisdiction of such governments, the 
        opening of new joint ventures or cooperative entities with 
        North Korean persons or the expansion of existing joint 
        ventures through additional investments, whether or not for or 
        on behalf of the Government of North Korea, unless such joint 
        ventures or cooperative entities have been approved by the 
        Committee of the United Nations Security Council established by 
        United Nations Security Council Resolution 1718 (2006);
            ``(5) prohibit the unauthorized clearing of funds by North 
        Korean financial institutions through financial institutions 
        subject to the jurisdiction of such governments;
            ``(6) prohibit the unauthorized conduct of commercial trade 
        with North Korea that is prohibited under applicable United 
        Nations Security Council resolutions;
            ``(7) prevent the provision of financial services to North 
        Korean persons or the transfer of financial services to North 
        Korean persons to, through, or from the territories of such 
        countries or by persons subject to the jurisdiction of such 
        governments; or''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Definitions.--In this section:
            ``(1) Appropriate congressional committees and 
        leadership.--The term `appropriate congressional committees and 
        leadership' means--
                    ``(A) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the majority and minority leaders of the Senate; and
                    ``(B) the Committee on Foreign Affairs, the 
                Committee on Financial Services, the Committee on Ways 
                and Means, and the Speaker, the majority leader, and 
                the minority leader of the House of Representatives.
            ``(2) Applicable united nations security council 
        resolution; north korean financial institution; north korean 
        person.--The terms `applicable United Nations Security Council 
        resolution', `North Korean financial institution', and `North 
        Korean person' have the meanings given those terms in section 3 
        of the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9202).''.

SEC. 117. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF BENEFICIAL 
              OWNERSHIP RULES TO ACCESS THE INTERNATIONAL FINANCIAL 
              SYSTEM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
the appropriate congressional committees a report setting forth the 
findings of the Secretary regarding how the Government of North Korea 
is exploiting laws regarding beneficial ownership of property to access 
the international financial system.
    (b) Elements.--The Secretary shall include in the report required 
under subsection (a) proposals for such legislative and administrative 
action as the Secretary considers appropriate to combat the abuse by 
the Government of North Korea of shell companies and other similar 
entities to avoid or evade sanctions.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form but may include a classified annex.

SEC. 118. NORTH KOREA STRATEGY.

    (a) Report on Strategy Required.--Not later than 90 days after the 
date of the enactment of this Act, the President shall submit to the 
appropriate congressional committees a report that sets forth a 
strategy of the United States with respect to North Korea.
    (b) Elements.--The report required by subsection (a) shall include 
the following elements:
            (1) The desired end state in North Korea and current United 
        States objectives relative to security, economic, and illicit 
        finance threats emanating from North Korea.
            (2) A detailed strategy to accomplish the end state 
        described in paragraph (1).
            (3) A description of existing unilateral and multilateral 
        levers the United States has to exert coercive pressure on 
        North Korea, together with an assessment of the degree to which 
        those levers have been utilized thus far, the degree to which 
        those actions have imposed costs on North Korea, remaining 
        options for increasing those costs, and parameters the 
        President will use to determine when and to what degree 
        increasing those costs is necessary.
            (4) An identification of the resources and authorities 
        necessary to carry out the strategy described in paragraph (2).
            (5) An identification of any capacity and resource gaps 
        that would affect the execution of the strategy described in 
        paragraph (2) and a mitigation plan to address such gaps.
            (6) A description of the economic, political, and trade 
        relationships between the People's Republic of China and North 
        Korea and the Russian Federation and North Korea, including 
        trends in those relationships and their impact on the 
        Government of North Korea.
            (7) A description of the significant economic, political, 
        and trade relationships between North Korea and countries other 
        than the People's Republic of China or the Russian Federation, 
        and an identification of countries that may be undermining 
        United States objectives identified in paragraph (1).
            (8) A description of the channels North Korea is using to 
        access the United States and international financial systems 
        and the degree to which those channels have been targeted by 
        United States and multilateral sanctions thus far.
            (9) An assessment of current and desired partner nation 
        contributions to countering threats from North Korea and a plan 
        to enhance economic and political cooperation with nations that 
        have shared security interests.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form but may include a classified annex.
    (d) Updates Required.--The President shall provide Congress with 
regular updates on the implementation of the strategy required pursuant 
to subsection (a) in unclassified form.

             Subtitle B--Congressional Review and Oversight

SEC. 121. NOTIFICATION OF TERMINATION OR SUSPENSION OF SANCTIONS.

    Not less than 15 days before taking any action to terminate or 
suspend the application of sanctions under this title or an amendment 
made by this title, the President shall notify the appropriate 
congressional committees of the President's intent to take the action 
and the reasons for the action.

SEC. 122. REPORTS ON CERTAIN LICENSING ACTIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the President 
shall submit to the appropriate congressional committees a report on 
the operation of the system for issuing licenses for transactions under 
covered regulatory provisions during the preceding 180-day period that 
includes--
            (1) the number and types of such licenses applied for 
        during that period;
            (2) the number and types of such licenses issued during 
        that period; and
            (3) a summary of all general and specific licenses issued 
        with respect to North Korea.
    (b) Covered Regulatory Provision Defined.--In this section, the 
term ``covered regulatory provision'' means any of the following 
provisions, as in effect on the day before the date of the enactment of 
this Act and as such provisions relate to North Korea:
            (1) Part 743, 744, or 746 of title 15, Code of Federal 
        Regulations.
            (2) Part 510 of title 31, Code of Federal Regulations.
            (3) Any other provision of title 31, Code of Federal 
        Regulations.
    (c) Form.--Each report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

SEC. 123. BRIEFINGS ON IMPLEMENTATION AND ENFORCEMENT OF SANCTIONS.

    Not later than 90 days after the date of the enactment of this Act, 
and regularly thereafter, the Secretary of the Treasury shall provide 
to the appropriate congressional committees a briefing on efforts 
relating to the implementation and enforcement of United States 
sanctions with respect to North Korea, including appropriate updates on 
the efforts of the Department of the Treasury to address compliance 
with such sanctions by foreign financial institutions.

SEC. 124. REPORT ON FINANCIAL NETWORKS AND FINANCIAL METHODS OF THE 
              GOVERNMENT OF NORTH KOREA.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter through 
        2021, the President shall submit to the appropriate 
        congressional committees a report on sources of external 
        support for the Government of North Korea that includes--
                    (A) a description of the methods used by the 
                Government of North Korea to deal in, transact in, or 
                conceal the ownership, control, or origin of goods and 
                services exported by North Korea;
                    (B) an assessment of the relationship between the 
                proliferation of weapons of mass destruction by the 
                Government of North Korea and the financial industry or 
                financial institutions;
                    (C) an assessment of the relationship between the 
                acquisition by the Government of North Korea of 
                military expertise, equipment, and technology and the 
                financial industry or financial institutions;
                    (D) a description of the export by any person to 
                the United States of goods, services, or technology 
                that are made with significant amounts of North Korean 
                labor, material, or goods, including minerals, 
                manufacturing, seafood, overseas labor, or other 
                exports from North Korea;
                    (E) an assessment of the involvement of any person 
                in human trafficking involving citizens or nationals of 
                North Korea;
                    (F) a description of how the President plans to 
                address the flow of funds generated by activities 
                described in subparagraphs (A) through (E), including 
                through the use of sanctions or other means;
                    (G) an assessment of the extent to which the 
                Government of North Korea engages in criminal 
                activities, including money laundering, to support that 
                Government;
                    (H) information relating to the identification, 
                blocking, and release of property described in section 
                201B(b)(1) of the North Korea Sanctions and Policy 
                Enhancement Act of 2016, as added by section 111;
                    (I) a description of the metrics used to measure 
                the effectiveness of law enforcement and diplomatic 
                initiatives of Federal, State, and foreign governments 
                to comply with the provisions of applicable United 
                Nations Security Council resolutions; and
                    (J) an assessment of the effectiveness of programs 
                within the financial industry to ensure compliance with 
                United States sanctions, applicable United Nations 
                Security Council resolutions, and applicable Executive 
                orders.
            (2) Form.--Each report required by paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
    (b) Interagency Coordination.--The President shall ensure that any 
information collected pursuant to subsection (a) is shared among the 
Federal departments and agencies involved in investigations described 
in section 102(b) of the North Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9212(b)).

SEC. 125. REPORT ON NORTH KOREAN CYBER CAPABILITIES AND THREATS TO 
              UNITED STATES ECONOMIC AND SECURITY INTERESTS.

    Section 209(a)(2) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9229(a)(2)) is amended--
            (1) in subparagraph (C), by striking ``; and'' and 
        inserting a semicolon;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following:
                    ``(D) an analysis of the cyber capabilities of the 
                Government of North Korea, the threat posed by such 
                capabilities, and the capacity of the Government of 
                North Korea to potentially undermine United States 
                economic and security interests, including the United 
                States financial system; and''.

SEC. 126. REPORT ON COUNTRIES OF CONCERN WITH RESPECT TO TRANSSHIPMENT, 
              REEXPORTATION, OR DIVERSION OF CERTAIN ITEMS TO NORTH 
              KOREA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter through 2021, the 
Director of National Intelligence shall submit to the President, the 
Secretary of Defense, the Secretary of Commerce, the Secretary of 
State, the Secretary of the Treasury, and the appropriate congressional 
committees a report that identifies all countries that the Director 
determines are of concern with respect to transshipment, reexportation, 
or diversion of items subject to the provisions of the Export 
Administration Regulations under subchapter C of chapter VII of title 
15, Code of Federal Regulations, to an entity owned or controlled by 
the Government of North Korea.
    (b) Form.--Each report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

                      Subtitle C--General Matters

SEC. 131. RULEMAKING.

    The President shall prescribe such rules and regulations as may be 
necessary to carry out this title and amendments made by this title.

SEC. 132. AUTHORITY TO CONSOLIDATE REPORTS.

    (a) In General.--Any and all reports required to be submitted to 
the appropriate congressional committees under this title or an 
amendment made by this title that are subject to a deadline for 
submission consisting of the same unit of time may be consolidated into 
a single report that is submitted pursuant to that deadline.
    (b) Contents.--Any reports consolidated under subsection (a) shall 
contain all information required under this title or an amendment made 
by this title and any other elements that may be required by existing 
law.

SEC. 133. WAIVERS, EXEMPTIONS, AND TERMINATION.

    (a) Application and Modification of Exemptions and Waivers From 
North Korea Sanctions and Policy Enhancement Act of 2016.--Section 208 
of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 
U.S.C. 9228) is amended--
            (1) by inserting ``201B,'' after ``201A,'' each place it 
        appears; and
            (2) in subsection (c), by inserting ``, not less than 15 
        days before the waiver takes effect,'' after ``if the 
        President''.
    (b) Exception Relating to Importation of Goods.--
            (1) In general.--No provision affecting sanctions under 
        this title or an amendment made by this title shall apply to 
        sanctions on the importation of goods.
            (2) Good defined.--In this subsection, the term ``good'' 
        has the meaning given that term in section 16 of the Export 
        Administration Act of 1979 (50 U.S.C. 4618) (as continued in 
        effect pursuant to the International Emergency Economic Powers 
        Act (50 U.S.C. 1701 et seq.)).
    (c) Suspension.--
            (1) In general.--Subject to section 121, any requirement to 
        impose sanctions under this title or the amendments made by 
        this title, and any sanctions imposed pursuant to this title or 
        any such amendment, may be suspended for up to one year if the 
        President makes the certification described in section 401 of 
        the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9251) to the appropriate congressional committees.
            (2) Renewal.--A suspension under paragraph (1) may be 
        renewed in accordance with section 401(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9251(b)).
    (d) Termination.--Subject to section 121, any requirement to impose 
sanctions under this title or the amendments made by this title, and 
any sanctions imposed pursuant to this title or any such amendment, 
shall terminate on the date on which the President makes the 
certification described in section 402 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9252).

SEC. 134. PROCEDURES FOR REVIEW OF CLASSIFIED INFORMATION.

    (a) In General.--If a finding under this title or an amendment made 
by this title, a prohibition, condition, or penalty imposed as a result 
of any such finding, or a penalty imposed under this title or an 
amendment made by this title, is based on classified information (as 
defined in section 1(a) of the Classified Information Procedures Act 
(18 U.S.C. App.)) and a court reviews the finding or the imposition of 
the prohibition, condition, or penalty, the Secretary of the Treasury 
may submit such information to the court ex parte and in camera.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to confer or imply any right to judicial review of any 
finding under this title or an amendment made by this title, any 
prohibition, condition, or penalty imposed as a result of any such 
finding, or any penalty imposed under this title or an amendment made 
by this title.

SEC. 135. BRIEFING ON RESOURCING OF SANCTIONS PROGRAMS.

    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of the Treasury shall provide to the appropriate 
congressional committees a briefing on--
            (1) the resources allocated by the Department of the 
        Treasury to support each sanctions program administered by the 
        Department; and
            (2) recommendations for additional authorities or resources 
        necessary to expand the capacity or capability of the 
        Department related to implementation and enforcement of such 
        programs.

SEC. 136. BRIEFING ON PROLIFERATION FINANCING.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall provide to 
the appropriate congressional committees a briefing on addressing 
proliferation finance.
    (b) Elements.--The briefing required by subsection (a) shall 
include the following:
            (1) The Department of the Treasury's definition and 
        description of an appropriate risk-based approach to combating 
        financing of the proliferation of weapons of mass destruction.
            (2) An assessment of--
                    (A) Federal financial regulatory agency oversight, 
                including by the Financial Crimes Enforcement Network, 
                of United States financial institutions and the 
                adoption by their foreign subsidiaries, branches, and 
                correspondent institutions of a risk-based approach to 
                proliferation financing; and
                    (B) whether financial institutions in foreign 
                jurisdictions known by the United States intelligence 
                and law enforcement communities to be jurisdictions 
                through which North Korea moves substantial sums of 
                licit and illicit finance are applying a risk-based 
                approach to proliferation financing, and if that 
                approach is comparable to the approach required by 
                United States financial institution supervisors.
            (3) A survey of the technical assistance the Office of 
        Technical Assistance of the Department of the Treasury, and 
        other appropriate Executive branch offices, currently provide 
        foreign institutions on implementing counter-proliferation 
        financing best practices.
            (4) An assessment of the ability of foreign subsidiaries, 
        branches, and correspondent institutions of United States 
        financial institutions to implement a risk-based approach to 
        proliferation financing.

                 TITLE II--DIVESTMENT FROM NORTH KOREA

SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM 
              COMPANIES THAT INVEST IN NORTH KOREA.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should support the decision of any State or local government 
made for moral, prudential, or reputational reasons, to divest from, or 
prohibit the investment of assets of the State or local government in, 
a person that engages in investment activities described in subsection 
(c) if North Korea is subject to economic sanctions imposed by the 
United States or the United Nations Security Council.
    (b) Authority To Divest.--Notwithstanding any other provision of 
law, a State or local government may adopt and enforce measures that 
meet the requirements of subsection (d) to divest the assets of the 
State or local government from, or prohibit investment of the assets of 
the State or local government in, any person that the State or local 
government determines, using credible information available to the 
public, engages in investment activities described in subsection (c).
    (c) Investment Activities Described.--Investment activities 
described in this subsection are activities of a value of more than 
$10,000 relating to an investment in North Korea or in goods or 
services originating in North Korea that are not conducted pursuant to 
a license issued by the Department of the Treasury.
    (d) Requirements.--Any measure taken by a State or local government 
under subsection (b) shall meet the following requirements:
            (1) Notice.--The State or local government shall provide 
        written notice to each person with respect to which a measure 
        under this section is to be applied.
            (2) Timing.--The measure applied under this section shall 
        apply to a person not earlier than the date that is 90 days 
        after the date on which written notice under paragraph (1) is 
        provided to the person.
            (3) Opportunity to demonstrate compliance.--
                    (A) In general.--The State or local government 
                shall provide to each person with respect to which a 
                measure is to be applied under this section an 
                opportunity to demonstrate to the State or local 
                government that the person does not engage in 
                investment activities described in subsection (c).
                    (B) Nonapplication.--If a person with respect to 
                which a measure is to be applied under this section 
                demonstrates to the State or local government under 
                subparagraph (A) that the person does not engage in 
                investment activities described in subsection (c), the 
                measure shall not apply to that person.
            (4) Sense of congress on avoiding erroneous targeting.--It 
        is the sense of Congress that a State or local government 
        should not adopt a measure under subsection (b) with respect to 
        a person unless the State or local government has--
                    (A) made every effort to avoid erroneously 
                targeting the person; and
                    (B) verified that the person engages in investment 
                activities described in subsection (c).
    (e) Notice to Department of Justice.--Not later than 30 days before 
a State or local government applies a measure under this section, the 
State or local government shall notify the Attorney General of that 
measure.
    (f) Authorization for Prior Applied Measures.--
            (1) In general.--Notwithstanding any other provision of 
        this section or any other provision of law, a State or local 
        government may enforce a measure (without regard to the 
        requirements of subsection (d), except as provided in paragraph 
        (2)) applied by the State or local government before the date 
        of the enactment of this Act that provides for the divestment 
        of assets of the State or local government from, or prohibits 
        the investment of the assets of the State or local government 
        in, any person that the State or local government determines, 
        using credible information available to the public, engages in 
        investment activities described in subsection (c) that are 
        identified in that measure.
            (2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1), (2), and (3)(A) of subsection (d) on and 
        after the date that is 2 years after the date of the enactment 
        of this Act.
    (g) No Preemption.--A measure applied by a State or local 
government that is consistent with subsection (b) or (f) is not 
preempted by any Federal law.
    (h) Definitions.--In this section:
            (1) Asset.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``asset'' means public monies, and 
                includes any pension, retirement, annuity, endowment 
                fund, or similar instrument, that is controlled by a 
                State or local government.
                    (B) Exception.--The term ``asset'' does not include 
                employee benefit plans covered by title I of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.).
            (2) Investment.--The term ``investment'' includes--
                    (A) a commitment or contribution of funds or 
                property;
                    (B) a loan or other extension of credit; and
                    (C) the entry into or renewal of a contract for 
                goods or services.
    (i) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) and 
        subsection (f), this section applies to measures applied by a 
        State or local government before, on, or after the date of the 
        enactment of this Act.
            (2) Notice requirements.--Except as provided in subsection 
        (f), subsections (d) and (e) apply to measures applied by a 
        State or local government on or after the date of the enactment 
        of this Act.

SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET 
              MANAGERS.

    Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-13(c)(1)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) engage in investment activities described in 
                section 201(c) of the Otto Warmbier Banking 
                Restrictions Involving North Korea Act of 2017.''.

SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.

    It is the sense of Congress that--
            (1) a fiduciary of an employee benefit plan, as defined in 
        section 3(3) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(3)), may divest plan assets from, or avoid 
        investing plan assets in, any person the fiduciary determines 
        engages in investment activities described in section 201(c), 
        if--
                    (A) the fiduciary makes that determination using 
                credible information that is available to the public; 
                and
                    (B) the fiduciary prudently determines that the 
                result of that divestment or avoidance of investment 
                would not be expected to provide the employee benefit 
                plan with--
                            (i) a lower rate of return than alternative 
                        investments with commensurate degrees of risk; 
                        or
                            (ii) a higher degree of risk than 
                        alternative investments with commensurate rates 
                        of return; and
            (2) by divesting assets or avoiding the investment of 
        assets as described in paragraph (1), the fiduciary is not 
        breaching the responsibilities, obligations, or duties imposed 
        upon the fiduciary by subparagraph (A) or (B) of section 
        404(a)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1104(a)(1)).

SEC. 204. RULE OF CONSTRUCTION.

    Nothing in this title, an amendment made by this title, or any 
other provision of law authorizing sanctions with respect to North 
Korea shall be construed to affect or displace--
            (1) the authority of a State or local government to issue 
        and enforce rules governing the safety, soundness, and solvency 
        of a financial institution subject to its jurisdiction; or
            (2) the regulation and taxation by the several States of 
        the business of insurance, pursuant to the Act of March 9, 1945 
        (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) (commonly 
        known as the ``McCarran-Ferguson Act'').

       TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Financial Industry Guidance to 
Halt Trafficking Act'' or the ``FIGHT Act''.

SEC. 302. FINDINGS.

    Congress finds the following:
            (1) The terms ``human trafficking'' and ``trafficking in 
        persons'' are used interchangeably to describe crimes involving 
        the exploitation of a person for the purposes of compelled 
        labor or commercial sex through the use of force, fraud, or 
        coercion.
            (2) According to the International Labour Organization, 
        there are an estimated 24,900,000 people worldwide who are 
        victims of forced labor, including human trafficking victims in 
        the United States.
            (3) Human trafficking is perpetrated for financial gain.
            (4) According to the International Labour Organization, of 
        the estimated $150,000,000,000 or more in global profits 
        generated annually from human trafficking--
                    (A) approximately \2/3\ are generated by commercial 
                sexual exploitation, exacted by fraud or by force; and
                    (B) approximately \1/3\ are generated by forced 
                labor.
            (5) Most purchases of commercial sex acts are paid for with 
        cash, making trafficking proceeds difficult to identify in the 
        financial system. Nonetheless, traffickers rely heavily on 
        access to financial institutions as destinations for 
        trafficking proceeds and as conduits to finance every step of 
        the trafficking process.
            (6) Under section 1956 of title 18, United States Code 
        (relating to money laundering), human trafficking is a 
        ``specified unlawful activity'' and transactions conducted with 
        proceeds earned from trafficking people, or used to further 
        trafficking operations, can be prosecuted as money laundering 
        offenses.

SEC. 303. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the President should aggressively apply, as 
        appropriate, existing sanctions for human trafficking 
        authorized under section 111 of the Trafficking Victims 
        Protection Act of 2000 (22 U.S.C. 7108);
            (2) the Financial Crimes Enforcement Network of the 
        Department of the Treasury should continue--
                    (A) to monitor reporting required under subchapter 
                II of chapter 53 of title 31, United States Code 
                (commonly known as the ``Bank Secrecy Act'') and to 
                update advisories, as warranted;
                    (B) to periodically review its advisories to 
                provide covered financial institutions, as appropriate, 
                with a list of new ``red flags'' for identifying 
                activities of concern, particularly human trafficking;
                    (C) to encourage entities covered by the advisories 
                described in subparagraph (B) to incorporate relevant 
                elements provided in the advisories into their current 
                transaction and account monitoring systems or in 
                policies, procedures, and training on human trafficking 
                to enable financial institutions to maintain ongoing 
                efforts to examine transactions and accounts;
                    (D) to use geographic targeting orders, as 
                appropriate, to impose additional reporting and 
                recordkeeping requirements under section 5326(a) of 
                title 31, United States Code, to carry out the purposes 
                of, and prevent evasions of the Bank Secrecy Act; and
                    (E) to utilize the Bank Secrecy Act Advisory Group 
                and other relevant entities to identify opportunities 
                for nongovernmental organizations to share relevant 
                actionable information on human traffickers' use of the 
                financial sector for nefarious purposes;
            (3) Federal banking regulators, the Department of the 
        Treasury, relevant law enforcement agencies, and the Human 
        Smuggling and Trafficking Center, in partnership with 
        representatives from the United States financial community, 
        should adopt regular forms of sharing information to disrupt 
        human trafficking, including developing protocols and 
        procedures to share actionable information between and amongst 
        covered institutions, law enforcement, and the United States 
        intelligence community;
            (4) training front line bank and money service business 
        employees, school teachers, law enforcement officers, foreign 
        service officers, counselors, and the general public is an 
        important factor in identifying trafficking victims;
            (5) the Department of Homeland Security's Blue Campaign, 
        training by the BEST Employers Alliance, and similar efforts by 
        industry, human rights, and nongovernmental organizations 
        focused on human trafficking provide good examples of current 
        efforts to educate employees of critical sectors to save 
        victims and disrupt trafficking networks;
            (6) the President should intensify diplomatic efforts, 
        bilaterally and in appropriate international fora, such as the 
        United Nations, to develop and implement a coordinated, 
        consistent, multilateral strategy for addressing the 
        international financial networks supporting human trafficking; 
        and
            (7) in deliberations between the United States Government 
        and any foreign country, including through participation in the 
        Egmont Group of Financial Intelligence Units, regarding money 
        laundering, corruption, and transnational crimes, the United 
        States Government should--
                    (A) encourage cooperation by foreign governments 
                and relevant international fora in identifying the 
                extent to which the proceeds from human trafficking are 
                being used to facilitate terrorist financing, 
                corruption, or other illicit financial crimes;
                    (B) encourage cooperation by foreign governments 
                and relevant international fora in identifying the 
                nexus between human trafficking and money laundering;
                    (C) advance policies that promote the cooperation 
                of foreign governments, through information sharing, 
                training, or other measures, in the enforcement of this 
                title;
                    (D) encourage the Financial Action Task Force to 
                update its July 2011 typology reports entitled, 
                ``Laundering the Proceeds of Corruption'' and ``Money 
                Laundering Risks Arising from Trafficking in Human 
                Beings and Smuggling of Migrants'', to identify the 
                money laundering risk arising from the trafficking of 
                human beings; and
                    (E) encourage the Egmont Group of Financial 
                Intelligence Units to study the extent to which human 
                trafficking operations are being used for money 
                laundering, terrorist financing, or other illicit 
                financial purposes.

SEC. 304. COORDINATION OF HUMAN TRAFFICKING ISSUES BY THE OFFICE OF 
              TERRORISM AND FINANCIAL INTELLIGENCE.

    (a) Functions.--Section 312(a)(4) of title 31, United States Code, 
is amended--
            (1) by redesignating subparagraphs (E), (F), and (G) as 
        subparagraphs (F), (G), and (H), respectively; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) combating illicit financing relating to human 
                trafficking;''.
    (b) Interagency Coordination.--Section 312(a) of such title is 
amended by adding at the end the following:
            ``(8) Interagency coordination.--The Secretary of the 
        Treasury, after consultation with the Undersecretary for 
        Terrorism and Financial Crimes, shall designate an office 
        within the OTFI that shall coordinate efforts to combat the 
        illicit financing of human trafficking with--
                    ``(A) other offices of the Department of the 
                Treasury;
                    ``(B) other Federal agencies, including--
                            ``(i) the Office to Monitor and Combat 
                        Trafficking in Persons of the Department of 
                        State; and
                            ``(ii) the Interagency Task Force to 
                        Monitor and Combat Trafficking;
                    ``(C) State and local law enforcement agencies; and
                    ``(D) foreign governments.''.

SEC. 305. STRENGTHENING THE ROLE OF ANTI-MONEY LAUNDERING AND OTHER 
              FINANCIAL TOOLS IN COMBATING HUMAN TRAFFICKING.

    (a) Interagency Task Force Recommendations Targeting Money 
Laundering Related to Human Trafficking.--
            (1) In general.--Not later than 270 days after the date of 
        the enactment of this Act, the Interagency Task Force to 
        Monitor and Combat Trafficking shall submit to the Committee on 
        Banking, Housing, and Urban Affairs, the Committee on Foreign 
        Relations, and the Committee on the Judiciary of the Senate, 
        the Committee on Financial Services, the Committee on Foreign 
        Affairs, and the Committee on the Judiciary of the House of 
        Representatives, the Secretary of the Treasury, and each 
        appropriate Federal banking agency--
                    (A) an analysis of anti-money laundering efforts of 
                the United States Government and United States 
                financial institutions related to human trafficking; 
                and
                    (B) appropriate legislative, administrative, and 
                other recommendations to strengthen efforts against 
                money laundering relating to human trafficking.
            (2) Required recommendations.--The recommendations under 
        paragraph (1) shall include--
                    (A) best practices based on successful anti-human 
                trafficking programs currently in place at financial 
                institutions that are suitable for broader adoption;
                    (B) stakeholder feedback on policy proposals 
                derived from the analysis conducted by the task force 
                referred to in paragraph (1) that would enhance the 
                efforts and programs of financial institutions to 
                detect and deter money laundering related to human 
                trafficking, including any recommended changes to 
                internal policies, procedures, and controls related to 
                human trafficking;
                    (C) any recommended changes to training programs at 
                financial institutions to better equip employees to 
                deter and detect money laundering related to human 
                trafficking; and
                    (D) any recommended changes to expand human 
                trafficking-related information sharing among financial 
                institutions and between such financial institutions, 
                appropriate law enforcement agencies, and appropriate 
                Federal agencies.
    (b) Additional Reporting Requirement.--Section 105(d)(7) of the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103(d)(7)) is 
amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting ``the Committee on Financial 
                Services,'' after ``the Committee on Foreign Affairs''; 
                and
                    (B) by inserting ``the Committee on Banking, 
                Housing, and Urban Affairs,'' after ``the Committee on 
                Foreign Relations,'';
            (2) in subparagraph (Q)(vii), by striking ``; and'' and 
        inserting a semicolon;
            (3) in subparagraph (R), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(S) the efforts of the United States to eliminate 
                money laundering related to human trafficking and the 
                number of investigations, arrests, indictments, and 
                convictions in money laundering cases with a nexus to 
                human trafficking.''.
    (c) Required Review of Procedures.--Not later than 180 days after 
the date of the enactment of this Act, the Federal Financial 
Institutions Examination Council, in consultation with the Secretary of 
the Treasury, the private sector, and appropriate law enforcement 
agencies, shall--
            (1) review and enhance training and examinations procedures 
        to improve the surveillance capabilities of anti-money 
        laundering and countering the financing of terrorism programs 
        to detect human trafficking-related financial transactions;
            (2) review and enhance procedures for referring potential 
        human trafficking cases to the appropriate law enforcement 
        agency; and
            (3) determine, as appropriate, whether requirements for 
        financial institutions and covered financial institutions are 
        sufficient to detect and deter money laundering related to 
        human trafficking.

SEC. 306. SENSE OF CONGRESS ON RESOURCES TO COMBAT HUMAN TRAFFICKING.

    It is the sense of Congress that--
            (1) adequate funding should be provided for critical 
        Federal efforts to combat human trafficking;
            (2) the Department of the Treasury should have the 
        appropriate resources to vigorously investigate human 
        trafficking networks under section 111 of the Trafficking 
        Victims Protection Act of 2000 (22 U.S.C. 7108) and other 
        relevant statutes and Executive orders;
            (3) the Department of the Treasury and the Department of 
        Justice should each have the capacity and appropriate resources 
        to support technical assistance to develop foreign partners' 
        ability to combat human trafficking through strong national 
        anti-money laundering and countering the financing of terrorism 
        programs;
            (4) each United States Attorney's Office should be provided 
        appropriate funding to increase the number of personnel for 
        community education and outreach and investigative support and 
        forensic analysis related to human trafficking; and
            (5) the Department of State should be provided additional 
        resources, as necessary, to carry out the Survivors of Human 
        Trafficking Empowerment Act (section 115 of Public Law 114-22; 
        129 Stat. 243).

                TITLE IV--DEFENSE PRODUCTION ACT MATTERS

SEC. 401. LIMITATION ON CANCELLATION OF DESIGNATION OF SECRETARY OF THE 
              AIR FORCE AS DEPARTMENT OF DEFENSE EXECUTIVE AGENT FOR A 
              CERTAIN DEFENSE PRODUCTION ACT PROGRAM.

    (a) Limitation on Cancellation of Designation.--The Secretary of 
Defense may not implement the decision, issued on July 1, 2017, to 
cancel the designation, under Department of Defense Directive 4400.01E, 
entitled ``Defense Production Act Programs'' and dated October 12, 
2001, of the Secretary of the Air Force as the Department of Defense 
Executive Agent for the program carried out under title III of the 
Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) until the date 
specified in subsection (c).
    (b) Designation.--The Secretary of the Air Force shall continue to 
serve as the sole and exclusive Department of Defense Executive Agent 
for the program described in subsection (a) until the date specified in 
subsection (c).
    (c) Date Specified.--The date specified in this subsection is the 
date of the enactment of a joint resolution or an Act approving the 
implementation of the decision described in subsection (a).
                                                       Calendar No. 263

115th CONGRESS

  1st Session

                                S. 1591

_______________________________________________________________________

                                 A BILL

To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.

_______________________________________________________________________

                           November 16, 2017

                       Reported with an amendment
```